GREAT EASTERN DOES NOT EXPECT MUCH IMPACT FROM US AND EUROPE'S FINANCIAL WOES

KUALA LUMPUR, Aug 9 (Bernama) -- The sovereign financial woes of the United
States and the Euro zone will not have a negative impact on Great Eastern
group's premium income this year, says Group Chief Executive Officer,
Christopher Wei.

He said the group had totally exited from the US treasury bonds but still
had some investments in the US corporate bonds.

"Yes, we have changed investment strategy. Great Eastern has an
insignificant exposure to US treasuries and to the more sensitive European
countries that are at risk.

"So, we have focused on longer term view and we are not so concerned about
short term market volatility," he said at a media briefing Monday.

Therefore, the group has to ensure on high quality assets that will deliver
over the expected duration, he said, adding that some rebalancing would be done.

Meanwhile, on the Malaysian market, Christopher said Great Eastern would
focus to boost its takaful business and continue to invest as well as maintain
Malaysia's leadership position going forward.

"The Malaysian market contributes short of 50 per cent to the group, and we
are very positive about the market and, it will continue to be our growth
engine," he added.

Great Eastern Life Assurance (M) Bhd expects to maintain its conventional
business growth of between 10 per cent and 15 per cent for the financial year
ending December 2011, above the industry benchmark growth of five per cent.

Its Director and Chief Executive Officer Koh Yaw Hui said the company would
focus on multi distribution channels and building quality.

For the financial year ended Dec 31, 2010, Great Eastern Malaysia recorded a
gross premium income of RM4.891 billion.

The company expects the takaful business to grow 20 per cent in
contributions over five years, Koh said adding that the market penetration rate
for the takaful business locally remained relatively low and there was room for
growth.