MEDIA RELEASE
For Immediate Release

Great Eastern Holdings Posts Record Profit of $476.9 million for 2006
The 4th Quarter’s profit jumped 91%

Singapore, 21 February 2007: Great Eastern Holdings Limited announces Profit Attributable to Shareholders of $476.9 million for the full year 2006, an increase of 28% over $372.9 million for 2005.

Insurance Operations
Group gross premiums totalled $5,418 million for 2006, an increase of 8% from $5,030 million for 2005.

Profit from all insurance funds in Singapore and from the general insurance fund in Malaysia is reported net of tax in the profit and loss statement with effect from 2005. The comparative figures for 2005, which were previously reported on a pre-tax basis, have been re-stated to take into account the income tax of $37.5 million borne by the insurance funds for 2005.

Profit from insurance operations (both life and general) totalled $403.5 million, with 51.5% coming from Singapore and 48.5% from Malaysia.

For life insurance operations, profit increased by 34% from $280.5 million to $376.2 million. Profit from the Participating Fund increased by 27% to $103.1 million, mainly due to higher maturity payouts where the 90/10 bonus distribution rule applied. The Non-Participating Fund showed a 47% in profit to $218.5 million, largely due to the favourable investment climate in 2006. In the fourth quarter alone, the profit in this Fund was more than eight-fold that of the fourth quarter of 2005. The good performance was due mainly to the strong investment performance particularly from the equity and real estate portfolios, and to the fact that in the fourth quarter in 2005, the Group had to recognise an additional tax liability of $35.7 million following the implementation of the risk based capital framework in Singapore. Profit from the Investment-Linked Fund increased 8% to $54.6 million, in line with the Group’s sustained efforts and focus in this product segment in Singapore and Malaysia.

For general insurance operations, profit dropped by 24% to $27.3 million. 2005’s profit of $35.9 million had included the release of $17.6 million in April following the transfer of Great Eastern Life’s general insurance business to its Non-Participating Fund.

Profit from Investments
Pre-tax profit from investments of the Shareholders’ Fund totalled $134.2 million, an increase of 29% over 2005, contributed mainly by the sale of shares in Robinson & Company Ltd and other investments.

Fees and Other Income
Pre-tax fees and other income for the whole year totalled $72.6 million, 26% higher than the $57.7 million in 2005. The increase in fee income was contributed by asset management subsidiaries, Lion Capital Management Ltd and Lion Fairfield Capital Management Ltd, and the financial advisory subsidiary, Alpha Financial Advisers Pte Ltd.

Total Assets
The Group’s total assets as at 31 Dec 2006 amounted to $42,026 million, compared to $39,229 million as at 31 Dec 2005. The net asset value per share was $6.20, about 12% higher than the $5.56 at year-end 2005.

Market Share
In Singapore, the Group retained its leadership position in the life insurance business in 2006 with a market share of 25.5% in terms of weighted premium. It is also the bancassurance distribution leader, with a market share of about 39% in this sector.

In Malaysia, Great Eastern is also expected to lead with a market share of nearly 25% in terms of weighted premium for 2006.

Outlook for the Year
Mr Tan Beng Lee, Director & Group CEO said, “We are pleased with our Company’s record performance in 2006. A very strong fourth quarter with $175.9 million profit has helped us attain these good results. This fourth quarter turned in the best quarterly performance to-date; it was even better than the second quarter of 2004 when we realised the one-off investment profit of $71 million from the disposal of the investment in OCBC shares.

The full year’s profit of $476.9 million in 2006 has brought our Company closer to our corporate profit-after-tax goal of $500 million in 2008, the year we celebrate our 100th anniversary.

Overall, the economic outlook remains largely positive. However, earnings from the Group’s insurance operations and investments will continue to be sensitive to changes in interest rates and in the equity markets.

The Group will continue to intensify efforts to expand its regional footprint, particularly in the areas of building up the talent pool and the acceleration of business development activities which will result in higher management expenses. The regional focus includes Malaysia, China, Indonesia and Vietnam.”

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About Great Eastern Holdings Ltd
Great Eastern Holdings is the largest insurance group in Singapore and Malaysia, with over S$42 billion in assets and 2.6 million policyholders. With two successful distribution channels – the tied agency force and bancassurance – it is the market leader in both Singapore and Malaysia. It is a subsidiary of OCBC Bank, Singapore’s longest established local bank which has assets of S$144 billion and a network of over 370 branches and representative offices in 15 countries and territories.

For more information, please contact

Loh Sook Mee
MD, Finance & Corporate Affairs
Tel: 6248 2711
email: LohSookMee@lifeisgreat.com.sg
or
Khoo Kah Siang
Head, Group Corporate Finance
Tel: 6248 2297
email: KhooKahSiang@lifeisgreat.com.sg
or
Boon-Gek Mudeliar
Head (Corporate Communications)
Tel: 6248 2215
email: Boon-GekMudeliar@lifeisgreat.com.sg