Annual Report 2010

Great Eastern Life Assurance (Malaysia) Berhad Annual Report 2010
Doing well Delivering more

Vision
To be the leading
nancial service
provider in Asia,
recognised for
our excellence.
Mission
To make life great by
providing nancial security,
and promoting good
health and meaningful
relationships.
Core values
Integrity
Initiative
Involvement
Ethos
Great Eastern is always
acting in the best interests
of our customers with
Fair Dealing as the basis
of our business.
Contents
Key Figures 1
Financial Highlights 8
Chairmans Statement 9
Corporate Information 12
Board of Directors 13
Senior Management Team 14
Key Functional Divisions 16
CEOs Report 18
2010 Agents Honour Roll 22
Calendar of Events 2010 26
Financial Statements 29
Head Ofce and Branch Network 120
It was a good year for Great Eastern. The cover aptly reects
the theme of this years report Doing well, Delivering more
and reafrms our commitment to, at all times, deliver from
the heart.
1
Key Figures
Performance highlights FY2010
Gross
premiums (RM000)
RM4,890,825
Earnings
per share
427
sen
Prot attributable
to shareholders (RM000)
RM426,605
Total
assets (RM000)
RM49,296,848
Shareholders
fund (RM000)
RM837,209
Doing well
through business
growth
Strong Sales Growth
Total weighted new business premium increased to RM938
million, with strong growth seen across all distribution channels.
Agency sales recorded a remarkable growth of 60% in
sales of regular premium Investment-Linked Plans. Our
strategic bancassurance partnership with OCBC Bank
registered a significant growth of 111% in total weighted
premium. Group insurance saw an incremental growth
of 20% in the lucrative Employee Benefit business.
The Great Eastern Experience
Our policyholders enjoy consistent excellent customer
service and benefits from our suite of well-designed, value-
added protection, savings and investment products.
Our successful BEE (Building Emotional Engagement)
Programme further inculcated a service-oriented
culture within the Great Eastern family.
Delivering excellent
service to our
customers
Doing well
through product
growth
Developing Innovative Products to Meet Todays Needs
New products were introduced. The Smart Early Payout
CriticalCare is an innovative first-of-its-kind plan in Malaysia that
pays at the early diagnosis of a critical illness, and not when the
critical illness has reached an advanced stage, as with most
insurance plans. Other notable product launches for 2010 were the
limited-pay regular premium endowment plans, Elite Builder and
Great Income Enhancer.
The Company marked a milestone in the bancassurance segment
with the launch of Premium Heritage, a first-ofits-kind Single
Premium Universal Life product specifically dedicated to the needs
of the high net worth customers of OCBC Bank.
Delivering more
choices for every
stage of life
Stable Protability
Despite challenging investment conditions, net profit attributable
to shareholders was RM426.6 million, driven by strong growth in
underwriting profits, healthy growth in new business sales and
higher long term profitability.
Award Winning Investment Arm
The investment division received the acclaimed award The Most
Astute Investor in Malaysian Ringgit Bond 2010 from The Asset
Benchmark Research.
Enhancing Returns To Shareholders
In view of the Companys performance in 2010 and its strong
capital position, the Board has recommended a cash distribution of
RM2.82 per ordinary share. Taking into account the interim
dividend of RM1.445 per ordinary share paid to shareholders in
October 2010, the total cash payment will be RM4.265 per
ordinary share, which amounts to RM426.5 million for the year.
Doing well
by strengthening
our nancials
Delivering better
results to our
stakeholders
Stable Protability
Despite challenging investment conditions, net profit attributable
to shareholders was RM426.6 million, driven by strong growth in
underwriting profits, healthy growth in new business sales and
higher long term profitability.
Award Winning Investment Arm
The investment division received the acclaimed award The Most
Astute Investor in Malaysian Ringgit Bond 2010 from The Asset
Benchmark Research.
Enhancing Returns To Shareholders
In view of the Companys performance in 2010 and its strong
capital position, the Board has recommended a cash distribution of
RM2.82 per ordinary share. Taking into account the interim
dividend of RM1.445 per ordinary share paid to shareholders in
October 2010, the total cash payment will be RM4.265 per
ordinary share, which amounts to RM426.5 million for the year.
Doing well
by strengthening
our nancials
Delivering better
results to our
stakeholders
8
3,142,533
2,583,201
1,906,837
2,000,982
3,373,406
Financial
Highlights
Total Assets
RM000
33,245,547
38,664,690
43,809,543
49,296,848
F
Y
0
6
F
Y
0
6
F
Y
0
7
F
Y
0
7
F
Y
0
8
F
Y
0
8
F
Y
0
9
F
Y
0
9
F
Y
1
0
F
Y
1
0
29,245,944
Benets To Policy Owners
RM000
2,634,965
2,658,555
2,819,050
3,145,043
2,059,974
12% 13%
Gross Premium Income
RM000
4,073,539
4,300,193
4,588,773
4,890,825
F
Y
0
6
F
Y
0
6
F
Y
0
7
F
Y
0
7
F
Y
0
8
F
Y
0
8
F
Y
0
9
F
Y
0
9
F
Y
1
0
F
Y
1
0
3,893,327
Investment Income & Capital Gain
RM000
77% 7%
F
Y
0
7
F
Y
0
8
F
Y
0
9
F
Y
1
0
Business In Force
RM000
186,290,062
193,602,208
198,878,787
209,382,693
5%
9
Our clear and consistent strategy to focus on growing our
portfolio of regular premium protection products
to meet the needs of our customers is now bearing fruit.
Chairmans
Statement
10
Great Eastern Life Assurance (Malaysia)
Berhad had a good year in 2010. Our clear
and consistent strategy to focus on growing
our portfolio of regular premium protection
products to meet the needs of our
customers is now bearing fruit. Buoyed by
Malaysias robust economic recovery, the
Company delivered a healthy set of results
and maintained its position as the leading
insurer in Malaysia in the face of strong
competition. Our 17,000-strong agency
force remained the largest in the industry,
and looks set to continue to grow.
Financial Performance
I am very pleased to report that the
Companys total weighted new business
premiums rose to RM938 million, an
increase of 15% from last years RM817
million, while our asset size increased
12.6% from RM43.8 billion to RM49.3
billion. Net profit attributable to
shareholders amounted to RM426.6
million.
Dividends
In view of the performance of the
Company in 2010 and its strong capital
position, the Board had declared an interim
dividend of RM1.445 per ordinary share,
which was paid on 26th October 2010. As
our position remained strong as at 31
December 2010, the Board has
recommended a second and final dividend
of RM2.82 per ordinary share.
Regulatory Developments
We welcomed the introduction of
regulations and guidelines like Bank Negara
Malaysias Treating Customers Fairly (TCF)
Guidelines, values which we have long
championed and which enhance consumer
confidence, product transparency and
professionalism.
Synergistic Benets from
Takaful Business
Great Eastern Takaful Sendirian Berhad
(GETSB) succeeded in securing the all-
important Takaful licence from Bank
Negara Malaysia. The penetration of the
Takaful business in the country is still very
low at 8% and the Takaful business
presents an enormous business
opportunity. With the Takaful products, our
agency force will now be able to offer an
enlarged suite of products to better meet
the insurance needs of all Malaysians.
Adding to our Product Range
On the product front, we launched Smart
Early Payout CriticalCare, the first in
Malaysia to pay at early diagnosis of a
critical illness, while on the bancassurance
front, our Premium Heritage was Malaysias
first single premium universal life product
dedicated to high net worth customers of
OCBC Bank. Our bancassurance
partnership with OCBC Bank performed
extremely well, registering a significant
growth of 111% in total weighted
premiums.
Growing our Agency Force
Our agency force of over 17,000 remains
our core distribution channel. We focused
on building the agency force and improving
productivity and activity ratios. To better
cater to changing market and customer
needs, steps were taken to change the
profile of the agency force, which now
comprises younger and more dynamic
agents. Close to 50% of our new recruits
are diploma holders or graduates. In 2010,
we recruited a total of 4,700 new agents, a
testament to the strength of the Great
Eastern brand. We continued to sharpen
the competency, professionalism and
leadership skills of our agency force
through courses and seminars.
Improving the Great Eastern
Customer Experience
Our customers are our inspiration. With our
102-year history, many have been with us
for generations. We are proud of the fact
that via our Great Eastern experience, our
two million customers have been able to
enjoy consistent and excellent service. Our
turnaround time for customer service, new
business underwriting and claims continued
to be among the fastest in the industry, as
ranked by Life Office Management
Association (LOMA). Our BEE (Building
Emotional Engagement) Programme further
inculcated a service-oriented culture within
the Company.
Chairmans
Statement
Our customers are
our inspiration.
With our 102-year
history, many have
been with us for
generations.
We are proud of the
Great Eastern
experience where
our two million
customers enjoy
consistent excellent
customer service.
11
Chairmans Statement
To take our service delivery to the next
level, we will continue to invest in training
and upgrading our staff and agency force
and equip them with the necessary tools to
do their job more efficiently and effectively.
Earning Recognition
The Company received numerous accolades
during the year. These included the Trusted
Brand Gold Award by Readers Digest; the
BrandLaureate SME Chapter Awards Most
Preferred Brand Award; the BrandLaureate
Corporate Branding category Best Brand
in Insurance; the 100 Leading Graduate
Employers 2010 Award by GTI Media as
well as The Most Astute Investor in
Malaysian Ringgit Bond 2010 by The Asset
Benchmark Research.
Giving Back to the Community
Whilst delivering good financial results and
gaining recognition are undoubtedly
important, we also placed great emphasis
on being a caring corporate citizen and
enhancing the lives of those in the
communities in which we operate.
We supported many worthy causes, with
special focus on children and women. Our
ChildrenCare activities raised RM240,000
for needy children while our project with
Gleneagles Hospital in Kuala Lumpur and
renowned designer Bill Keith succeeded in
raising RM75,000 from the sale of 3,000
Pink Couture bags for the Breast Cancer
Welfare Association. Three deserving and
talented young Malaysians were awarded
the Great Eastern Supremacy Scholarship
for Actuarial studies. To date, we have
offered a total of RM4.89 million in
scholarships for local and overseas tertiary
education.
Looking Ahead
The economic growth in the region and
Malaysia are expected to continue but the
uncertain economic recovery in the US,
rising inflationary pressures, the escalating
unrest in the Middle East as well as
on-going concerns of sovereign debt
default in Europe could have negative
spill-over effects. Nevertheless, our business
fundamentals are strong and consumer
confidence is likely to remain strong, which
bodes well for the Company.
Our challenge is to forge even further
ahead of our competitors and further
strengthen the Great Eastern brand as we
strive to deliver greater value to our
stakeholders. Service-wise, we will continue
to raise standards and strive to be the
industry benchmark. Priority will continue
to be placed on developing our people as
they fuel our future growth.
Our agency force will be further
strengthened as we raise their
professionalism and productivity. For
bancassurance, we will leverage on
synergies and focus on maximising the
potential with OCBC Bank. We will enhance
our data analytics capability, continue to
anticipate trends and heighten engagement
with all stakeholders. Cost management
and financial prudence will remain key
priorities.
Appreciation/A Warm Welcome
I would like to express my appreciation to
the Board of Directors for their valuable
insights and wise counsel. Mr Ng Keng Hooi
resigned as a member of our Board of
Directors and Group CEO in September
2010. I would like to thank Keng Hooi for
his contributions.
Mr Christopher Wei joined the Great
Eastern family as Group CEO from 10
February 2011 and is also a Director of
Great Eastern Life Assurance (Malaysia)
Berhad. Chris brings on board his broad-
based experience in the insurance industry
and with his in-depth knowledge and
experience, coupled with his leadership, the
Great Eastern Group will be in a strong
position to further grow our business.
As always, I would like to thank our
stakeholders and business partners for their
continued confidence and support. I would
also like to commend our management and
staff for their hard work and dedication.
We are well-positioned to make 2011
another good year for the Company and to
deliver continued profitable growth and
enhanced value for all our stakeholders.
Fang Ai Lian (Mrs)
Chairman
Great Eastern Life Assurance (Malaysia) Berhad
6 May 2011
12
Corporate
Information
BOARD OF DIRECTORS
Mrs Fang Ai Lian (Chairman)
Christopher Wei
Y Bhg Tan Sri Dato Nasrudin Bin
Bahari
Y Bhg Datuk Fong Weng Phak
Y Bhg Datuk Kamaruddin Bin Taib
Y Bhg Dato Albert Yeoh Beow Tit
Lee Kong Yip
Koh Yaw Hui
AUDIT COMMITTEE
Lee Kong Yip (Chairman)
Mrs Fang Ai Lian
NOMINATING COMMITTEE
(Chairman)
Mrs Fang Ai Lian
Christopher Wei
Lee Kong Yip
REMUNERATION COMMITTEE
(Chairman)
Mrs Fang Ai Lian
Christopher Wei
Lee Kong Yip
BOARD RISK COMMITTEE
(Chairman)
Lee Kong Yip
CHIEF EXECUTIVE OFFICER
Koh Yaw Hui
APPOINTED ACTUARY
Yap Chee Keong
COMPANY SECRETARY
Liza Hanim Binti Zainal Abidin
REGISTERED OFFICE
Level 20, Menara Great Eastern
303 Jalan Ampang
50450 Kuala Lumpur
AUDITORS
Messrs Ernst & Young
ENGAGEMENT PARTNER
Abdul Rauf Bin Rashid
13
Board of
Directors
1. Mrs Fang Ai Lian (Chairman)
2. Christopher Wei
3. Y Bhg Tan Sri Dato Nasrudin Bin Bahari
4. Y Bhg Datuk Fong Weng Phak
5. Y Bhg Datuk Kamaruddin Bin Taib
6. Y Bhg Dato Albert Yeoh Beow Tit
7. Lee Kong Yip
8. Koh Yaw Hui
1
6
2
7 8
3 4 5
14
1. Lee Pooi Hor
2. Cheong Soo Ching
3. Chan Chee Wei
4. Liza Hanim Binti Zainal Abidin
5. Yap Chee Keong
6. Richard Lin Kwok Wing
7. Koh Yaw Hui
8. Alan Teo Kwong Chia
9. Bruce Lee Yee Lam
10. Sophia Chng Sok Heang
11. Wong Wai Yean
12. Nancy Lim
13. Song Hock Wan
14. Audra Chung Kit Li
3 2 1 6 5 4 9 8 7 10 11 13 12 14
Senior
Management
Team
15
Lee Pooi Hor
Senior Vice President & Head
Information Technology
Senior Vice President &
Company Secretary
Nancy Lim
Human Capital
Sophia Chng Sok Heang
Senior Vice President & Deputy Head
Finance & Corporate Affairs
Audra Chung Kit Li
Chief Internal Audit
Yap Chee Keong
Appointed Actuary
Song Hock Wan
Customer Acquisition Division
Chan Chee Wei
Bancassurance
Wong Wai Yean
Vice President & Head
Group Insurance
Koh Yaw Hui
Chief Executive Officer
Bruce Lee Yee Lam
Executive Vice President & Head
Alan Teo Kwong Chia
Executive Vice President &
Chief Operations Ofcer
Richard Lin Kwok Wing
Chief Investment Ofcer
Cheong Soo Ching
Risk Management & Compliance
Senior Management Team
16
CUSTOMER ACQUISITION
(Agency Management)
Song Hock Wan
Customer Acquisition Division
Andy Ng Yen Heng
Centre for Excellence
Daniel Toh Chee Piaw
Vice President
Agency Management
Sean Loo Ping Nam
Vice President
Strategic Business Development Unit
Ibrahim Bin Abdullah
Assistant Vice President
Bumiputera Business Development Unit
Suresh Tanigajalam
Manager
Indian Business Development Unit
Selvamony Muniandy
Head
Agency Administration
Nicole Fong Mun Pooi
Manager
Events & Promotions
REGIONAL MANAGERS
Central Region 1
Koh Ken Yong
Central Region 2
Norizan Binti Yahya
Central Region 3
Daniel Toh Chee Piaw
Northern Region I
Chew Ing Tiong
Northern Region II
Ken Ong Kean Teik
Southern Region
James Pang Shau Hwa
Sabah Region
Jenny Pook Poh Choo
Sarawak Region
Ricky Voon Woo Kian
BUSINESS DEVELOPMENT MANAGERS
Klang
Susan Tan San San
Kota Bharu
Sham Irwan Isnin
Kuala Lumpur
Dickson Ow Siew Kay
Kuantan
See Han Chung
Melaka
Chong Kim
Miri
Scott Wong Charng Yeon
Penang
Alex Chng Seet Loke
Seremban
Yap Hock Ban
Key
Functional
Divisions
17
Key Functional Divisions
CORPORATE MARKETING
Kam Lee Lan
Vice President
Corporate Marketing
GROUP INSURANCE
Wong Wai Yean
Vice President & Head
Group Insurance
BANCASSURANCE
Chan Chee Wei
Bancassurance
ACTUARIAL
Yap Chee Keong
Appointed Actuary
COMPANY SECRETARIAT/LEGAL
Senior Vice President & Company
Secretary
Secretariat & Legal
Mazlin Haslinda Mohammed
Assistant Vice President & Head
Legal
Wendy Chin
Company Secretariat
FINANCE AND CORPORATE AFFAIRS
Bruce Lee Yee Lam
Executive Vice President & Head
Sophia Chng Sok Heang
Senior Vice President & Deputy Head

Mah Poon Keong
Vice President
Finance
Kwon Yen May
Head
Corporate Services
PRODUCT MARKETING
Stanley Ng
Product Marketing
RISK MANAGEMENT
Cheong Soo Ching
Risk Management & Compliance
COMPLIANCE
Jane Lai Choy Chan
Vice President
Compliance
HUMAN CAPITAL
Nancy Lim
Human Capital
Khoo Shang Hui
Corporate Communications
INTERNAL AUDIT
Audra Chung Kit Li
Chief Internal Auditor
INFORMATION TECHNOLOGY
Lee Pooi Hor
Information Technology
INVESTMENT
Richard Lin Kwok Wing
Chief Investment Ofcer
Sum Leng Kuang
Senior Vice President
Investment - Fixed Income
Alexis Jong Kian Wei
Vice President
Investment - Fixed Income
Ong Boo Khoon
Manager
Investment - Operations
OPERATIONS
Alan Teo Kwong Chia
Executive Vice President & Chief
Operations Ofcer
COOs Ofce
Tess Tan Shiu Chin
HealthCare Services
Teo May Leng
Customer Services, Branch Operations &
Group Administration
Lau Sok Im
Vice President
Operations Support
Lee Tat Fatt
Vice President
New Business
Thong Wai Yin
Vice President
Life Claims
18
CEOs Report
The family Takaful licence opens up immense potential for
business expansion and new opportunities as it allows our
agents to offer a wider range of products to our existing and
potential policyholders.
19
2010 was indeed a boom year as the
Malaysian economy strove to maintain a
stable growth trajectory after weathering
the 2009 global economic downturn. I am
proud to say that Great Eastern Life
Assurance (Malaysia) Berhad (Great Eastern)
has done very well as it achieved total
weighted new business of RM938 million.
During the year, the Companys assets
grew to RM49.3 billion, an increase of 13%
from the previous year. For the financial
year ended 31 December 2010, the
Company posted a net profit attributable to
shareholders amounting to RM426.6
million.
Expanding Business Potential and New
Opportunities
1 September 2010 was a historic day for
the Company as the Group was granted
Bank Negara Malaysias coveted family
Takaful licence. The family Takaful licence
opens up immense potential for business
expansion and new opportunities as it
allows our agents to offer a wider range of
products to our existing and potential
policyholders.
2010 marked an exciting year for the
Company as it launched new products and
innovative first-of-its-kind rider to enhance
Great Easterns offerings and support for its
field force. The Smart Early Payout
CriticalCare launched on 1 September 2010
is an innovative first-of-its-kind plan in
Malaysia that pays at the early diagnosis of
a critical illness, and not when the critical
illness has reached an advanced stage, as
with most insurance plans. The rider is
attachable to the SmartProtect Essential
Insurance 2 launched in April, which is part
of the enhanced Smart Portfolio series of
products. The Company on its part,
launched the Smart Early Payout
CriticalCare plan with a series of
advertisements in major newspapers and
selected magazines, as well as via
prominent billboards at key market
locations in West Malaysia. The Company
also held a series of road shows in major
shopping malls, monorail and LRT stations,
as well as hypermarkets to generate
product awareness. Other notable product
launches for 2010 were the limited-pay
regular premium endowment plans, Elite
Builder and Great Income Enhancer.
The Go4More initiative, launched at the
end of 2009 and extended into 2010, is an
important strategy to stretch the potential
of the field force and staff by encouraging
them to maximise the development and
growth of their business. In line with this,
the Strategic Business Development Unit
(SBDU) was set up with the objective of
providing focused agency support on
Investment-Linked Plans (ILP) and the
Accident and Health (A&H) business. The
SBDU also aims to spearhead the
enhancement and development of Great
Eastern products, provide specialised
training and business support, as well as
closely monitor the progress of the ILP and
A&H business, particularly their activity and
productivity ratios. These dedicated efforts
bore fruit as Great Eastern recorded a
remarkable ILP business growth of 60% in
2010.
Part of the Go4More initiative also included
the BRaVO programme launched in July
2010, which assisted the business
development team to apply a systematic
and consistent approach to support the
selected productive members of the field
force on a quarterly basis.
To recruit a new breed of professional
agents, the Company enhanced the Great
Entrepreneur Talent Search (GETS)
programme with the objective of attracting
new talent to its sales force. GETS carried
out several aggressive recruitment
initiatives, namely the Business Opportunity
Programme (BOP), which contributed a
10.6% growth in the number of new
agents, Hunt of Talent (HOT) series, and
Builder of Entrepreneur and Successful
Talent (BEST). BOP, HOT and BEST target
different potential agent segments with a
single focus of injecting talent into the
agency force. To reposition the agency
force, the Great Success campaign was
launched in October 2010, to feature the
testimonials of the young, dynamic and
successful agents of Great Eastern. To reap
continuous results from the enhancement
of agents competencies and
professionalism from the Agency
Transformation Programme (ATP), we have
further strengthened the key initiatives
through structured and systematic training
and development plans for agents that
include the Life Planning Advisors (LPA),
Professional Leadership Series (PLS) and the
Agency Management Training Council
(AMTC) programmes.
The other rising distribution channel, Group
Insurance, is focused on growing the
Employee Benefits business segment and
the GMBIS Investment-Linked Scheme. The
Group Insurance Department performed
particularly well, recording 9% growth in
total weighted premiums in 2010. The
SmartPartners initiative launched during the
year aimed to create more corporate
insurance sales opportunities via business
referrals from our Investment, Information
Technology and Finance departments. This
initiative yielded encouraging results as it
exceeded the SmartPartners sales target.
The year also saw encouraging response to
the Companys packaged Employee
Benefits product named Great Employee
Care, which was launched in July.
The Bancassurance segment registered an
impressive 111% growth in total weighted
premiums during the year, thanks to its
successful Bancassurance strategic
partnership with OCBC Bank. This strategic
partnership also led to enhancements in
the Companys Single Premium MRTA
product while new Regular Premium
products were introduced to cater for the
specific customer segments of the Bank.
Two new Regular Premium products
namely MaxVantage, MaxAdvance, and
two Riders, namely Comprehensive
Personal Accident and Hospital Benefit
Riders, were successfully launched. The
Company marked a milestone in the
Malaysian Insurance Industry with the
launch of its Premium Heritage, a first-of-
its-kind Single Premium Universal Life
product specifically dedicated to the needs
of the high net worth customers of OCBC
Bank. Continuous training and development
support were also provided to train OCBC
Bank sales staff to further boost sales.
Synergy in Business Support Units
The Operations Planning unit was
established to review, re-engineer and
realign the Companys operational
workflow and processes with the aim of
upgrading its overall operations and
functions. A vital project that was
successfully implemented was the
Productivity Standard Time, a standardised
measurement metric applied across all
functions within Operations to improve
work efficiencies and enhance capacity
planning to improve the delivery of services
to our customers. Riding on projects under
Operation Planning, a couple of initiatives
such as mandating claims requirements
before submission and empowering agency
leaders to certify photocopies of claims
documents were introduced. Through
these initiatives, the Company made
remarkable improvements in service
delivery and cost avoidance. It also saw a
47% decline in the number of incomplete
claims submitted, and in the process
achieved an annual cost savings of more
than RM100,000.
CEOs Report
20
In the area of Risk Management, the
Company formalised new and revised
policies as part of its risk governance
framework. These policies are aligned with
those of the Group and where appropriate,
included best practices and local regulatory
requirements to fortify them as part of
the measures to manage risk. In 2010,
the Enterprise Risk Dashboard was
redefined to better reflect the Companys
risk profile from the strategic, financial,
operational and compliance perspectives.
Other new reports were also introduced
by Risk Management to facilitate the
monitoring of risk by the oversight
committees. Compliance Requirements
Self-Assessment (CRSA) was introduced
to assist all departments in conducting
self-assessment on the effectiveness
of compliance control procedures, to
enhance awareness of the need to take
ownership in managing the Companys
compliance risks and to facilitate periodic
compliance certification, which is a core
deliverable under the Compliance Risk
Management Framework. The Company
also engaged in constant communication
with its staff as well as provided constant
training in its efforts to encourage staff
development. The Risk Management &
Compliance Division leveraged on the
Human Capital National Conference to
educate the staff on fraud risk awareness.
Always Keeping Customers in Mind
Great Eastern is always looking for
ways to develop the agency force and
mould its agents into professionals
who can provide competent financial
advice to our customers. The Life
Planning Advisor programme, which
is the flagship of Great Easterns
professional development programme,
has a membership of more than 3,600
students and has so far produced
more than 1,600 graduates with above
industry average personal productivity.
The Companys enhanced version
of e-Submission not only boosted
the agents professionalism but also
increased their productivity by helping
the field force to simplify their business
submission processes as well as reduce
the turnaround time. The result of this
initiative was a 100% submission rate,
which possibly gave Great Eastern the
distinction of being the first life insurance
company to achieve such a milestone.
Marketing Communications, meanwhile,
also initiated a slew of activities aimed
at building awareness of the need for
life protection and to reach out to and
engage the public. Smart For Life
Tea Talks were organised nationwide to
educate the public on healthy living and
the importance of financial planning. The
series of carnival-like health talks were
held in Kuala Lumpur, Kota Kinabalu,
Kuching, Kuantan, Johor Bharu, Penang,
Ipoh and Melaka. Policyholders and
members of the public benefited from the
talks by doctors and financial planners, as
well as enjoyed free health checks, and
special offers and discounts on health
products from our participating partners.
The Company held a series of fun
activities to reach out to and engage our
customers, in particular young working
adults, women and children. With the
growing popularity of the Internet and
social networking media among young
Malaysians, it is only natural that we reach
out to them online. Through CHAT, an
online financial analysis tool launched
in June and hosted on our corporate
website, individuals were encouraged to
log in to assess their financial needs in a
fun and interactive manner. Visitors to the
website were also rewarded for getting
their friends on board by helping them to
be more financially-savvy. The campaign
was supported by online advertisements
in selected high traffic website portals
such as MSN, Yahoo! and Facebook to
increase awareness of CHAT. We also
reached out to women and children by
participating in two major exhibitions
FemmeCity in July 2010 and The Star
Kids Fair in November 2010, both held at
the Kuala Lumpur Convention Centre.
StarBuddy, an online smart tool, was
introduced to provide the field force with
instant customer insights for agents to gain
a better understanding of their customers
portfolios and life insurance needs, which
will in turn help them to ensure that
policyholders take up adequate protection.
This also assists agents in sending out
relevant updates and promotion offers
to their customers as well as facilitate
them in providing administrative updates
on their customers policies. Through its
CRM efforts, the Company reached out
to 678,000 policyholders in 2010 and
succeeded in getting more customers to
enhance their protection, which amounted
to 15% of new business premiums.
CEOs Report
Great Eastern is
always looking for
ways to develop the
agency force and
mould its agents
into professionals
who can provide
competent nancial
advice to our
customers.
21
We launched and implemented the BEE
programme (BEE aptly stands for Building
Emotional Engagement) on 4 February,
to take the Group to new heights in
terms of customer service excellence
and to encourage the staff to be more
service-oriented in order to meet the
increasingly sophisticated needs of todays
customers. The BEE is a transformation
programme aimed at revolutionising
the mindset of the Company. In support
of better service excellence, the BEE
Wow Me! Programme was held in more
than a dozen Great Eastern Offices in
Malaysia, and was attended by 1,300
employees of the Great Eastern Group.
Leading the Pack and Gunning for
More
In 2010, the Great Eastern brand won for
the 7th consecutive year the Readers
Digest Trusted Brand Gold Award. It also
scored a double win by bagging two
BrandLaureate awards The BrandLaureate
SME Chapter Awards Most Preferred Brand
Award, selected through an online poll and
survey, and The BrandLaureate Corporate
Branding category Best Brand in
Insurance. The Companys success in these
two awards is testimony of the recognition
accorded to the Great Eastern brand in
the country as well as in the region.
In continuing the winning spree, the
Companys investment division received
two acclaimed awards, The Most Astute
Investor in Malaysian Ringgit Bond 2010
and one of the Most Astute Investors
in Malaysian Ringgit Bond 2010, from
The Asset Benchmark Research.
The IT division also did the Company
proud by emerging as the winner of
ShareGuides Annual ICT Award for the
eLATS project, under the Information
and Knowledge Management Excellence
category, outperforming many banks
which competed for the Award.
Our Human Capital Initiatives
The quest to attract talent among
companies is getting challenging as the
world becomes increasingly globalised
and human resources become more
mobile. The Company focuses on
attracting the best talents, developing
and retaining these talents, and creating
a conducive corporate culture that will
bring out the best in our talent.
The Human Capital divisions efforts at
building the Great Eastern brand and
selling the Great Eastern employment
experience among the private universities
led to the Company emerging for the
second consecutive year, as the leader
in the insurance sector in GTI Medias
Malaysias 100 Leading Graduate Employers
2010 Award. The recruitment team,
which has been trained in psychometrics
and career assessment, conducted
a programme via advertisements on
how to improve employer branding.
We continued to select the best of our
young via the Great Eastern Supremacy
Scholarship Award by sponsoring three top
students for Actuarial studies in Australia
and the United Kingdom in 2010. The
Great Eastern Supremacy Scholarship
Award, which was launched in 1998, has
benefited 84 students with scholarships
totaling RM4.89 million. Scholarships were
offered to local, regional and overseas
universities to provide financial assistance
to deserving applicants for selected fields
of studies. Several newly recruited fresh
graduates were also selected to attend
Bank Negara Malaysias Financial Services
Talent Enrichment Programme (FSTEP)
aimed at creating bench strength for the
financial sector in the coming years.
Talent management and organisational
awareness of the development of our
sector has always been our priority.
With the liberalisation of the financial
services sector, there is a pressing need
to understand the development of new
regulations such as Treating Customers
Fairly, the Personal Data Protection Act,
the Competition Act and so on. The
Human Capital division also held a National
Conference targeted at the 400-odd
staff members from the Companys 21
branches as part of its staff engagement
activity. The conference covered talks
on the latest Performance Management
Rating system in conjunction with OCBC
Bank, the new collective agreement signed
with the Insurance Industry Administration
Officers Association (IIAOA), and Climate
Survey findings. The number of training
hours held internally, increased from
2,916 hours in 2009 to 6,058 hours
in 2010, up a hefty 107.8%. The BEE
programme conducted internally also gave
the Company the opportunity to develop
a new group of internal line trainers.
In the next ten years, the insurance
sector will witness a flurry of mergers
and acquisitions, which will give rise to
greater demand for professionals in the
sector. For the second year running (2009,
2010), we have managed to be one of
the few insurance companies to receive
the LOMA Education Achievement Award
(EAA) Asia Pacific, as close to 250 Great
Eastern employees register for international
insurance studies annually. The LOMA
programme has not only helped us produce
several top students in the past, but also
enabled new recruits to our industry to pick
up the language of the trade more quickly.
Corporate Social Responsibility
Being Malaysias largest and the oldest
company in the life insurance industry,
we are sensitive to the underprivileged
in the communities around us. Each
year, we channel a fair amount of
sponsorships and philanthropic initiatives
to organisations, disaster-stricken victims
and the needy in our society. From the
Management to our employees and to
our dedicated agency force, we are firm
believers in giving back to society.
The Companys on-going community
project, ChildrenCare, which was launched
15 years ago, is a project close to the heart
of every Great Eastern member. To date,
Great Eastern has raised more than RM1.6
million through its annual fund-raising
campaigns and has donated to more than
169 homes nationwide in the last 15 years.
Future Outlook
After a fairly good start early this year,
the global economy is expected to soften
slightly in the second half. The Malaysian
economy is forecast to grow by 5.2% in
2011, which is slightly lower than in 2010.
Despite the less alluring economic
indicators, we strongly believe that 2011
will be a great year for Great Eastern. We
are cautiously optimistic of the business
outlook as we see growing affluence
among Malaysians, judging from our
performance in the previous years.
We as a Group will continue to strive
for excellence and benchmark ourselves
against the industrys best practices. We
will continue to offer our customers a
suite of innovative and friendly financial
products. We are committed to creating
synergy amongst our resources, building
stronger ties and ensuring that our balance
sheet remains robust. With the family
Takaful licence granted to Great Eastern,
we are optimistic that the Group will see
positive growth next year as we leverage
on this new business and enhance our
product offerings for our customers.
CEOs Report
22
2010 Agents
Honour Roll
(L to R)
Tan Lay Seong (Silver)
Eric Toh Chun Shiong (Gold)
Alex Aun Soo Lim (Bronze)
CEO Leaders Award
22
23
2010 Agents Honour Roll
(L to R)
Heng Shoou Ju (Gold)
Joe Yew Sin Yoo (Bronze)
Kuan Sousa (Silver)
CEO Producers Awards
23
24
2010 Agents
Honour Roll
Master Leader Award
Eric Toh Chun Shiong
Top 3 Group Sales Managers
Tan Lay Seong
Goh Siew Lin
Top 3 Group Sales Managers (Direct
Group)
Cynthia Chong Pui Kim
Alex Aun Soo Lim
Top 3 Unit Sales Managers
Adeline Gui Siew Luang
Goh Chee Nan
Bo Chin Hoong
Top 3 Personal Producers
Heng Shoou Ju
Amanda Tiew Way Chin
Kuan Sousa
Top 3 Career Agents
Heng Shoou Ju
Ng Sheau Fern
Top 3 Agents
Gan Ai Ling
Gui Soon Hwa
Kong Set Wah
2010 100+ Agency Awards
Tan Chong Meng
Tan Lay Seong
Karunakaran A/L Muthu Veeran
Top Rookie GSM
Daniel Cheng Eng Lee
Top Rookie USM
Bo Chin Hoong
Top Rookie Agent
Gan Ai Ling
Top 3 GETS Recruiters
Lee Poh Hiang
Alex Aun Soo Lim
Chang Lee Soon
Top ILP Group Sales Manager
Top ILP Unit Sales Manager
Adeline Gui Siew Luang
Top ILP Personal Producer
Gan Ai Ling
Top ILP Career Agent
Ng Sheau Fern
Top ILP Agent
Gan Ai Ling
Top ILP Rookie Agent
Gan Ai Ling
25
2010 Agents Honour Roll
*MDRT Top of the Table
Kuan Sousa
(Qualifying & Life 14 years)
Francis Lee Tat Tseong
(Qualifying 9 years)
*MDRT Court of the Table
Heng Shoou Ju
COT for 10 consecutive years
Kiu Siu Ung
Alex Aun Soo Lim
Chen Foong Ling
Amutha a/p Karpanan
Gan Ai Ling
(Qualifying 1 year)
Quarter Century Club & Life Member
Robert Cheah (28 years)
G Satheesan (26 years)
Honor Roll
G Satheesan
Robert Cheah
V Mahalingam
Gan Sing Shoo
A Uthay Kumaran
Lai Kok Fung
*MDRT Qualifying & Life Member
V Mahalingam (19 years)
A Uthay Kumaran (17 years)
Lai Kok Fung (17 years)
Cheah Har Mooi
(14 years & 15 years Life Member)
Kristy Law Kim Noi
Lee Fong Thye (14 years)
Lee Moi Chin (14 years)
N Thiban (14 years)
Agnes Tang Yet Kiew
Leong Yuet Wan (12 years)
Sue Yuet Moi (12 years)
Yu Siong Choo (12 years)
Cheng Wan Leng (11 years)
Adeline Gui Siew Luang (11 years)
Lam Yee Fun
Liew Nyok Foong (11 years)
Phang Boon Chai (11 years)
Eric Toh Chun Shiong (11 years)
Cecilia a/p Joseph Leo (10 years)
Foo Kwai Kheng (10 years)
Kho Siang Kit (10 years)
Liew Siew Yun (10 years)
Lim Chin Hong (10 years)
Ng Yoke Hwa (10 years)
Pua Lian Keng (10 years)
Tan Chai Siew (10 years)
Tan Choo Meng (10 years)
Tan Kim Siok (10 years)
Yau Kim Choy (10 years)
*MDRT Life Member
Alex Teh Boon Sing (27 years)
Chang Chee Kiang (23 years)
Michael Cheong Moon Lam (20 years)
Gan Sing Shoo (17 years)
Tan Poo Hong (17 years)
Chiew Guo Chang (14 years)
Cheong Kim Chee (14 years)
Yap Mee Len (14 years)
Jackson Ting Hwong Sui (13 years)
Jimmy Ng Bok Her (13 years)
Datin Tan Po Moi (12 years)
Fung Siew Hong (12 years)
Khoo Teck Leong (12 years)
Muhd Malkit (12 years)
Tan Kim Kok (12 years)
Chung Nyok Voon (11 years)
Low Kim Seng (11 years)
K R Raju (11 years)
Tan Lay Seong (11 years)
* Great Eastern proudly produced a total of 210 Agents who met the MDRT production
requirements in 2010.
* Information is correct at time of printing.
26
Calendar of
Events 2010
1. A child trying his skills out on safe driving.
2. Winner for the 7th consecutive year of the
Readers Digest Trusted Brand Award 2010.
3. Staff dressed to the theme and displayed their
lanterns for the Tanglung competition.
4. Staff Chinese New Year celebration.
4
2 1 1
3
27
5
8
Calendar of Events 2010
7
6
5. Accepting The BrandLaureate Award from
Tan Sri Radah Aziz.
6. Building a better and more productive agency
force through the Life Planning Advisors
Programme.
7. Winner for the 2nd consecutive year
Malaysias Top 100 Leading Graduate
Employer Award 2010.
8. Launch of the First in Malaysia, Smart Early
Payout CriticalCare.
January
The BrandLaureate SME Chapter Awards
2009 Most Preferred Brand Award
February
Chinese New Year Celebration
Launch Of BEE (Building Emotional
Engagement) programme
Launch of Smart For Life Tea Talk
March
The BrandLaureate Award Corporate
Branding Award For Insurance
ChildrenCare Road Safety Adventure
April
ChildrenCare Flea Market
May
Readers Digest Trusted Brand Award
2010
June
Life Planning Advisors Graduation
Ceremony
ChildrenCare Let Us Colour Your Wall
New!
July
Human Capital National Conference
Championing You; Strengthening Ties
SGAM ICT Awards 2010 (Information
and Knowledge Management Excellence
category)
28
10
11
Calendar of
Events 2010
9
12
August
Great Eastern 102
nd
Anniversary
Launch of OCBCs Regular Premium Life
Insurance Financing
Launch of StarBuddy
Presentation of Great Eastern Supremacy
Scholarship Programme
September
TangLung-Raya Carnival
Launch of Smart Early Payout
CriticalCare
October
Launch Of Breast Cancer Fund-Raising
Campaign
November
Annual Appreciation Awards Ceremony
Malaysias Top 100 Leading Graduate
Employer Award 2010
Christmas Tree Lighting Ceremony
December
Launch of Great Eastern Takaful
Annual Dinner & Dance 2010
9. The Pink Couture bag proved a big hit and
raised RM75,000 for the Breast Cancer
Welfare Association.
10. Annual Dinner and Dance staff performance.
11. Appreciating long service award staff.
12. Supporting agents to be star performers.
29
Financial
Statements
Contents
Directors Report 30
Statement of Corporate Governance 34
Statement by Directors 42
Statutory Declaration 43
Independent Auditors Report 44
Balance Sheet 45
Income Statement 46
Statement of Comprehensive Income 47
Statement of Changes in Equity 48
Cash Flow Statement 49
Notes to the Financial Statements 50
30
The Directors have pleasure in presenting their report together with the audited nancial statements of the Company for the year ended
31 December 2010.
PRINCIPAL ACTIVITY
The Company is engaged principally in the underwriting of life insurance business.
There has been no signicant change in the principal activities during the nancial year.
RESULTS
RM000
Net prot for the year 426,605
There were no material transfers to or from reserves or provisions during the nancial year other than as disclosed in the nancial
statements.
In the opinion of the Directors, the results of the operations of the Company during the nancial year were not substantially affected by
any item, transaction or event of a material and unusual nature, other than the effects arising from the changes in accounting policies as
disclosed in Note 2.4.
DIVIDENDS
The amount of dividends paid by the Company since 31 December 2009 were as follows:
RM000
In respect of nancial year ended 31 December 2009 as reported in the Directors report of that year:
First and nal single tier dividend of RM5.055 per ordinary share on 100,000,005 ordinary shares declared
on 8 April 2010 and paid on 1 June 2010. 505,500
In respect of nancial year ended 31 December 2010:
Interim single tier dividend of RM1.445 per ordinary share on 100,000,005 ordinary shares paid on 26 October 2010. 144,500
650,000
At the forthcoming Annual General Meeting of the Company, a second and nal single tier dividend in respect of the nancial year ended
31 December 2010 of RM2.82 (2009: RM5.06) per ordinary share on 100,000,005 ordinary shares, amounting to a dividend payable of
RM282,000,014 (2009: RM505,500,025) will be proposed for shareholders approval.
The nancial statements for the current nancial year do not reect this proposed dividend. Such dividend, if approved by the shareholders,
will be accounted for in equity as an appropriation of retained earnings in the nancial year ended 31 December 2011.
DIRECTORS
The names of the Directors of the Company in ofce since the date of the last report and at the date of this report are:
Mrs Fang Ai Lian (nee Ho Ai Lian) (Chairman)
Y Bhg Tan Sri Dato Nasrudin Bin Bahari (Appointed on 18 January 2010)
Y Bhg Datuk Kamaruddin Bin Tan Sri Taib (Appointed on 1 March 2010)
Y Bhg Dato Yeoh Beow Tit
Mr Lee Kong Yip
Mr Koh Yaw Hui
Mr Ng Keng Hooi (Resigned on 30 September 2010)
Directors Report
31
Directors Report
DIRECTORS BENEFITS
Neither at the end of the nancial year, nor at any time during that year, did there subsist any arrangement to which the Company was a
party, whereby the Directors might acquire benets by means of the acquisition of shares in or debentures of the Company or any other
body corporate, other than the options over shares in the Companys ultimate holding company as disclosed in this report.
Since the end of the previous nancial year, no Director has received or become entitled to receive a benet (other than benets included
in the aggregate amount of emoluments received or due and receivable by the Directors or the xed salary of a full-time employee of the
Company as shown in Note 24(b) to the nancial statements) by reason of a contract made by the Company or a related corporation with
any Director or with a rm of which the Director is a member or with a company in which the Director has a substantial nancial interest
required to be disclosed under Section 169(8) of the Companies Act, 1965.
DIRECTORS INTERESTS
According to the register of Directors shareholdings, the interests of Directors in ofce at the end of the nancial year in shares and
options over shares in the Companys ultimate holding company, Oversea-Chinese Banking Corporation Limited (OCBC) during the
nancial year were as follows:
Shareholdings in which Directors have a direct interest
1.1.2010 Acquired Disposed 31.12.2010
(a) Ordinary shares in OCBC of RM1.00 each
Fang Ai Lian (nee Ho Ai Lian) - 6,000 - 6,000
Tan Sri Dato Nasrudin Bin Bahari 19,200 356 - 19,556
Fong Weng Phak 80,052 - - 80,052
Yeoh Beow Tit 420,678 99,849 80,000 440,527
Lee Kong Yip 115,445 4,272 - 119,717
Koh Yaw Hui 13,332 - 6,000 7,332

Shareholdings in which Directors are deemed to have an interest
1.1.2010 Granted Vested 31.12.2010
Yeoh Beow Tit 17,671
(1)
- - 17,671
(1)
Koh Yaw Hui 55,461
(2)
3,685 - 59,146
(2)
Shareholdings in which Directors have a direct interest
1.1.2010 Acquired Disposed 31.12.2010
(b) 4.2% non cumulative non convertible Class G
Preference Shares in OCBC
Fong Weng Phak 14,891 - - 14,891
(c) 5.1% non cumulative non convertible Class B
Preference Shares in OCBC
Fang Ai Lian (nee Ho Ai Lian) 1,700 - - 1,700
32
DIRECTORS INTERESTS (continued)
Options held by Directors in their own name
Exercise
Expiry Price
Date S$ 1.1.2010 Granted Exercised 31.12.2010
(d) Options to subscribe for ordinary shares
in the capital of OCBC of RM1.00 each
Yeoh Beow Tit 13.3.2015 5.77 32,640 - 32,640 -
13.3.2016 6.82 50,000 - 50,000 -
13.3.2017 8.59 50,000 - - 50,000
13.3.2018 7.52 50,000 - - 50,000
Koh Yaw Hui 7.4.2015 5.78 76,800 - 44,800* 32,000
22.5.2016 6.58 25,000 - - 25,000
13.3.2017 8.59 25,000 - - 25,000
13.3.2018 7.52 30,000 - - 30,000
15.3.2019 4.14 23,224 - - 23,224
14.3.2020 8.76 - 40,000 - 40,000
* Exercised pursuant to cash election of the OCBC Share Option Scheme.
Notes:
(1)
Comprises deemed interest in 17,670 ordinary shares subject to award(s) under the OCBC Deferred Share Plan and subscription rights over one (1) ordinary share granted
under the OCBC Employee Share Purchase Plan.
(2)
Comprises deemed interest in 59,146 ordinary shares subject to award(s) under the OCBC Deferred Share Plan.
In accordance with Article 66 of the Companys Articles of Association, Mr Lee Kong Yip and Mr Koh Yaw Hui would retire at the
forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.
Tan Sri Dato Nasrudin bin Bahari would retire pursuant to Section 129(2) of the Companies Act, 1965 at the forthcoming Annual General
Meeting and offers himself for re-appointment in accordance with Section 129(6) of the Companies Act, 1965 to hold ofce until the
conclusion of the next Annual General Meeting of the Company.
CORPORATE GOVERNANCE
The Company has taken concerted steps to comply with Bank Negara Malaysias guidelines BNM/RH/GL/003-2 on Prudential Framework
of Corporate Governance for Insurers including the best practices referred to in the guideline. The Company is committed to the principles
prescribed in this guideline to ensure public accountability at all times. Further details are disclosed on page 7 in the nancial statements.
OTHER STATUTORY INFORMATION
(a) Before the balance sheet and income statement of the Company were made out, the Directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful
debts and satised themselves that all known bad debts had been written off and that adequate provision had been made for
doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary
course of business have been written down to an amount which they might be expected so to realise.
Directors Report
33
(b) At the date of this report, the Directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of provision for doubtful debts in the nancial statements of the Company
inadequate to any substantial extent; and
(ii) the values attributed to current assets in the nancial statements of the Company misleading.
(c) At the date of this report, the Directors are not aware of any circumstances which have arisen which would render adherence to the
existing method of valuation of assets or liabilities of the Company misleading or inappropriate.
(d) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or nancial
statements of the Company which would render any amount stated in the nancial statements misleading.
(e) As at the date of this report, there does not exist:
(i) any charge on the assets of the Company which has arisen since the end of the nancial year which secures the liabilities of any
other person; or
(ii) any contingent liability in respect of the Company which has arisen since the end of the nancial year.
(f) In the opinion of the Directors:
(i) no contingent liability or other liability has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the nancial year which will or may affect the ability of the Company to meet its obligations as and when
they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the nancial year and
the date of this report which is likely to affect substantially the results of the operations of the Company for the nancial year in
which this report is made.
(g) Before the balance sheet and income statement of the Company were made out, the Directors took reasonable steps to ascertain that
there was adequate provision for its insurance liabilities in accordance with the valuation method specied in Part D of the Risk-Based
Capital (RBC) Framework for insurers issued by Bank Negara Malaysia.
For the purpose of paragraphs (e) and (f) above, contingent and other liabilities do not include liabilities arising from contracts of insurance
underwritten in the ordinary course of business of the Company.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in ofce.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 31 January 2011.
Lee Kong Yip Koh Yaw Hui
Directors Report
34
Corporate Governance
(as referred to in the Directors Report)
The Board of Directors of Great Eastern Life Assurance (Malaysia) Berhad (the Company) fully appreciates the importance of adopting
high standards of corporate governance and is committed to uphold good corporate governance practices in conformity with Bank
Negara Malaysia (BNM) Guidelines, BNM/RH/GL 003-2 on Prudential Framework of Corporate Governance for Insurers dated 18
April 2006 (the Framework). The Framework is divided into six main sections namely, Board Responsibility and Oversight, Management
Accountability, Corporate Independence, Internal Controls and Operational Risk Management, Public Accountability and Fair Practices,
and Financial Reporting. There are 33 principles in the Framework.
The Company adopts management practices that are consistent with the Framework. It has also complied with the prescriptive applications
and most of the best practices principles prescribed in the Framework.
PART A. BOARD RESPONSIBILITY AND OVERSIGHT
Boards Conduct of its Affairs, Composition and Balance
The Companys Board of Directors (the Board) has overall responsibility of leading the Company and providing strategic directions in
terms of corporate objectives and business strategies to the Company.
The Board comprises 6 Non-Executive Directors and 1 Executive Director, with all the Non-Executive Directors being Independent Directors,
ensuring issues are considered with independence and objectivity. All Directors comply with the prescribed maximum limit of other
directorships held.
The Companys Board as at 31 December 2010 consists of seven Directors as set out below:
Members Status of directorship
Mrs Fang Ai Lian (nee Ho Ai Lian) - Chairman Independent Non-Executive Director
Yg Bhg Tan Sri Dato Nasrudin Bin Bahari (Appointed on 18 January 2010) Independent Non-Executive Director
Yg Bhg Datuk Fong Weng Phak Independent Non-Executive Director
Yg Bhg Datuk Kamaruddin Bin Taib (Appointed on 1 March 2010) Independent Non-Executive Director
Yg Bhg Dato Yeoh Beow Tit * Independent Non-Executive Director
Mr Lee Kong Yip Independent Non-Executive Director
Mr Koh Yaw Hui Non-Independent Executive Director
* In line with BNM/RH/GL 003-1, Dato Yeoh Beow Tit is deemed an Independent Non-Executive Director with effect from 1 August 2010.
During the year, Mr Ng Keng Hooi, resigned from the Board on 30 September 2010.
The Board comprises professionals drawn from diverse backgrounds with the requisite blend of experience, expertise and perspective to
oversee the Companys business operations. Collectively with such experience and knowledge capabilities, they provide the necessary core
competencies to the Company, in areas that include insurance, banking, nancial services, accounting and auditing. Directors who serve
on the Audit Committee and other Board Committees are appropriately qualied to discharge their responsibilities.
The appointment and re-appointment of Directors to the Companys Board has been approved by BNM. On a quarterly basis, the Directors
are subject to an internal declaration to review their status of compliance with Part XII of the Insurance Regulations 1996 on their fullment
of the minimum criteria of a t and proper person.
The Articles of Association of the Company provide for one third of the remaining directors to retire from ofce by rotation and if eligible,
to be re-elected at the Annual General Meeting of the Company. A Director who is over 70 years old is subject to re-appointment
annually in accordance with Section 129(6) of the Companies Act, 1965. Directors whose terms of appointment are close to expiry would
be nominated for re-appointment/re-election following the provisions of BNM/RH/GL 003-01 on Minimum Standards for Prudential
Management of Insurers (Consolidated) for the Appointment/Reappointment of Chairman, Directors, and Chief Executive Ofcers. Re-
appointment or re-election of Directors are made with the prior approval of BNM.
35
PART A. BOARD RESPONSIBILITY AND OVERSIGHT (continued)
Boards Conduct of its Affairs, Composition and Balance (continued)
The Board meets once every two months with the meeting dates scheduled in advance before the beginning of every calendar year. All
Directors in ofce at the end of the nancial year complied with the 75% minimum attendance requirement at such meetings. During the
nancial year 2010, the Board met six times and the attendance of the Directors were as follows:-
Name Number of Board Meetings
Attended Percentage
(%)
Mrs Fang Ai Lian (nee Ho Ai Lian) - Chairman 6/6 100
Tan Sri Dato Nasrudin Bin Bahari (Appointed on 18 January 2010) 5/6 83
Datuk Fong Weng Phak 6/6 100
Datuk Kamaruddin Bin Taib (Appointed on 1 March 2010) 5/5 100
Dato Yeoh Beow Tit 6/6 100
Mr Lee Kong Yip 6/6 100
Mr Koh Yaw Hui 6/6 100
(Mr Ng Keng Hooi who resigned from the Board on 30 September 2010, attended all four (4) Board meetings prior to his resignation.)
The Board has in place a formal and transparent procedure for the appointment and re-appointment of Directors and CEO. Proposals for
the appointment of new Directors to the Board, the CEO and the Key Senior Ofcers (KSOs) are reviewed by the Nominating Committee
(NC). The Board after considering the nominees proposed by the NC, appoints the Directors, the CEO and the KSOs.
Besides carrying out its duciary and statutory responsibilities, the Board approves the annual business and strategic plans of the Company.
It oversees the management of the Companys business affairs, and regularly reviews the nancial performance of the Company. Matters
reserved for the Boards decision include corporate restructuring, major acquisition and disposal of assets by the Company, all material
related party transactions, authority levels for the Companys core functions, outsourcing of core business functions and corporate policies
on investment, underwriting, reinsurance, claims management and risk management.
The Directors have all been issued with a Directors Handbook on the Company, Code of Ethics for Directors and a full set of the guidelines
and circulars issued by BNM since 1997. The Companys Directors have all attended the Corporate Directors Training Programme conducted
under the auspices of the Companies Commission of Malaysia.
A newly appointed Director receives an in-house orientation training program which includes presentations by senior management staff
of the various functions of the Company. The training serves to familiarise the Directors with the life insurance industry as well as
the Companys business practices, accounting by funds, compliance controls, risks overview and corporate governance practices. The
Company encourages continuous professional development for the benet of Directors and on an on-going basis, Directors kept abreast
of the developments in market place through attendance of relevant education programmes, seminars, talks on relevant subject elds, as
well as circulation of business reading materials on a monthly basis. Directors are also promptly updated with any policy and administrative
changes or new regulatory requirements issued by BNM. The Company has made available resources for Directors to receive training in
any specic area.
Chairman and Chief Executive Ofcer
The roles of the Chairman and the CEO are distinct and separate, with clear division of responsibility between them to ensure an appropriate
balance of authority, increased accountability and greater capacity of the Board for independent decision making. For the nancial year
ended 31 December 2010, the Companys Chairman, Mrs Fang Ai Lian (nee Ho Ai Lian), was an Independent Non-Executive Director and
the CEO of the Company was Mr Koh Yaw Hui. The Chairman and CEO are not related to each other.
The Companys Chairman leads the Board and fosters the Boards effectiveness. The Chairman, with the assistance of the Company
Secretary, facilitates the convening of board meetings. She sets guidelines and monitors the ow of information from Management to the
Board to ensure that all material information provided to the Directors are timely and clear, to facilitate the Boards consideration of such
matters. Her responsibilities also include facilitating robust discussions and deliberations in Board meetings, and encouraging constructive
relations between Directors as well as between the Board and Management. She promotes high standards of corporate governance with
the full support of the other Directors, the Company Secretary and Management.
36
Chairman and Chief Executive Ofcer (continued)
The CEO manages the Company and oversees its business operations in accordance with the Groups strategy, plans and policies to
achieve the corporate performance and nancial goals, ensuring inter alia operational and organisational efciency, prot performance
and effective risk management.
The CEO manages the businesses of the Company and implements the Boards decisions, with the assistance of the Senior Management
Team of the Company. Collectively they are responsible for the day-to-day operations and administration of the Company.
Access to Information
Board members are provided with adequate and timely information and reports, including background explanatory information relating to
matters brought before the Board, forecasts, regular internal nancial statements of the Company and explanations of material variances
between actual results and budgets. The Directors have independent access to the advice and services of the Company Secretary and the
Senior Management Team.
The Board Members are also provided with access to all information within the Company whether as a full board or in their individual
capacity, in furtherance of their duties.
Board Committees
The Board has established specialised Board Committees to assist it in carrying out its responsibilities and oversight over the Companys
operations more effectively. These Board Committees comprising Audit Committee, Board Risk Committee, Nominating Committee and
Remuneration Committee, operate under clearly dened terms of reference approved by the Board and minutes of meetings of these
Committees are tabled periodically at the regularly convened Board meetings.
Audit Committee
The Audit Committee (AC) comprises the following three members, all of whom are Independent Non-Executive Directors:-
Mr Lee Kong Yip - Chairman
Mrs Fang Ai Lian (nee Ho Ai Lian)
Datuk Fong Weng Phak
The members of the AC are appropriately qualied to discharge their responsibilities as prescribed by the Framework.
The AC held six meetings in 2010 and carried out functions specied in the Companies Act 1965, Insurance Act 1996, Insurance Regulations
1996, BNM Guidelines and other relevant guidelines and regulations. Attendance at meetings in 2010 by all the members was 100%.
The AC discharged the following functions:-
(a) Reviewed with the internal and external auditors their audit plans, their evaluation of the system of internal accounting controls, their
audit ndings and Managements response to those ndings;
(b) Reviewed the scope and results of the internal audit procedures and resources needed;
(c) Reviewed, with the internal and external auditors, the effectiveness of the material internal controls including the nancial controls of
the Company;
(d) Reviewed, with the external auditors, the quarterly nancial statements and the audited nancial statements of the Company for the
nancial year and the auditors report thereon and thereafter submitted the audited nancial statements to the Board for consideration
and approval;
(e) Reviewed the assistance given by the ofcers to the auditors;
(f) Reviewed the scope and results of the audit procedures and its cost effectiveness and reviewed the independence and objectivity of
the external auditors before nominating the external auditors for re-appointment;
37
Audit Committee (continued)
(g) Reviewed related party transactions to ascertain that the terms of such transactions were at arms length basis, on normal commercial
terms and not prejudicial to the interests of the Company and its shareholders; and
(h) Reviewed with the external auditors and the Senior Management, the impact of new or proposed changes in accounting standards,
policies or regulatory requirements on the nancial statements.
The nature and extent of the non-audit services, if any, provided by the external auditors would not affect their independence as external
auditors of the Company.
The AC has full and independent access to the Companys Senior Management and Internal Auditors. The AC also met with the external
auditors, without the presence of Management. Resources are made available to the AC to enable it to discharge its functions. The internal
audit function is independent of the activities it audits. The Chief Internal Auditor reports functionally to the AC and Head of Group Audit,
and administratively to the CEO.
Board Risk Committee
The Board Risk Committee (BRC) supports the Board in the overall risk management oversight of the Company and in ensuring that
a risk management process is in place and functioning effectively. The BRC comprises the following three members, all of whom are
Independent Non-Executive Directors:-
Datuk Fong Weng Phak - Chairman
Dato Yeoh Beow Tit
Mr Lee Kong Yip
The BRC meets at least four times a year. In 2010, it held six meetings and the attendance by all the members was 100%.
The BRC is responsible for the following:-
Governance & Oversight
(a) To review the overall risk management philosophy, in line with the overall corporate strategy and risk tolerance set and approved by
the Board.
(b) To review and endorse frameworks, policies, strategies and limits relating to Companys risk management, investment management,
asset-liability management and liability management activities for the Boards approval.
(c) To endorse the Group Risk Management Charter outlining the fundamental principles, role, responsibility, authority and reporting line
of the Risk Management and Compliance function for the Boards adoption.
(d) To endorse the appointment of the Head of Risk Management and Compliance function.
(e) To review and recommend risk tolerance levels (Risk Appetite Statement as well as Regulatory and Economic Capital Limits) for the
Boards approval.
(f) To oversee the establishment and implementation of approved frameworks, policies, strategies and limits; and where required, to
approve deviations from approved frameworks and policies.
(g) To review the adequacy of risk management practices for material risks, such as market, credit, liquidity, insurance, operational and
compliance risks on a regular basis.
(h) To review Managements frameworks and policies that govern the process for identifying, assessing and managing risks and review
Managements performance against these frameworks and policies.
38
Governance & Oversight (continued)
(i) To review the adequacy of frameworks, policies, strategies and resources for the performance of risk management, investment
management, asset-liability management and liability management activities.
(j) To initiate any review and action as appropriate for prudent risk management.
(k) To ensure that the risk management function has adequate infrastructure and resources; and that it is appropriately staffed with
experienced and qualied employees who are sufciently independent to perform their duties objectively.
(l) To review the scope, effectiveness and objectivity of the risk management function.
Risk Management
(m) To review reports to monitor and control the Companys risk exposures.
(n) To review and endorse the annual Risk Disclosures for the Boards approval.
Investment, Asset-liability & Liability Management
(o) To review and endorse for the Boards approval, the annual strategic asset allocation and tactical asset allocation limits; new asset class
and complex structures; investment transactions; and new insurance product risk.
(p) To undertake any other functions as directed/delegated by the Board.
Nominating Committee
The Nominating Committee (NC) comprises the following four members, all of whom are Independent Non-Executive Directors:-
Dato Yeoh Beow Tit
Mr Lee Kong Yip
The members of the NC possess the appropriate mix of skills and experience, and are appropriately qualied to discharge their
responsibilities.
The NC meets at least once a year. The Committee held ve meetings during the year under review and the attendance by all Members
were 100%.
(Mr Ng Keng Hooi who resigned from the Board on 30 September 2010, attended all three (3) meetings prior to his resignation.)
With the endorsement of the Board, the NC has established the minimum requirements for the Board and the CEO to perform their
responsibilities effectively following statutory and regulatory requirements.
The NC is entrusted with the responsibility of proposing new nominees for appointment to the Board to ensure that nominations of
new Directors are made in the best interest of the Company and its shareholders. Apart from nomination of new Directors, the NC is
also responsible for proposing nominees for the positions of CEO and KSOs of the Company. The procedures on such nomination and
appointment including re-appointment have been put in place and approved by the Board. These have been drawn up in line with the
prescribed regulatory and legal requirements.
The NC also recommends the appointment, re-appointment and re-election of Directors to the Board and assesses the mix of skills,
experience and competencies that Directors should bring to the Board. The NC makes recommendations to the Board on all such
nominations of Directors as well as nominations to ll up Board Committees.
On an annual basis, the NC reviews the Boards structure, size and composition and makes recommendations to the Board with regards to
any changes that are deemed necessary.
39
Nominating Committee (continued)
The NC has in place a mechanism to carry out the Board-approved process for assessing the effectiveness of the Board as a whole and of
the Board Committees, and presents its ndings to the Board. No Director was involved in the assessment of his own contribution to the
effectiveness of the Board.
Whenever applicable and consistent with the prescribed Framework, the NCs recommendations would be made in consultation with the
NC of the holding company, taking into consideration the contribution of the Directors and of the CEO and KSOs in discharging their
duties for the benet of the Company.
Remuneration Committee
The Remuneration Committee (RC) comprises the following three members, all of whom are Independent Non-Executive Directors:-
Mr Lee Kong Yip
The RC meets at least once a year. In 2010, it held two meetings and the attendance by the Members was 100%.
(Mr Ng Keng Hooi who resigned from the Board on 30 September 2010, attended both meetings prior to his resignation.)
A Board-approved Framework on Remuneration for Directors, CEO and KSOs is in place. The RC is charged with the responsibility of
reviewing and recommending to the Board the remuneration packages of Directors, CEO and KSOs that are appropriate to attract and
retain Directors, CEO and KSOs of the calibre needed to manage the Company successfully.
Non-Executive Directors are paid Directors fees which are recommended by the Board for approval at the Companys AGM.
The RC reviews the Directors remuneration on an annual basis and makes recommendations to the Board for any changes. No Director
was involved in deciding his own remuneration.
Whenever applicable and consistent with the Framework, the RCs recommendations will be made in consultation with the RC of the
holding company, taking into consideration the contributions of the Directors and of the CEO and KSOs in discharging their duties for the
benet of the Company and of the Group.
PART B. MANAGEMENT ACCOUNTABILITY
Whilst the Board is responsible for establishing appropriate framework and policies within which the Company should operate, the
Management is accountable for effecting such policies and responsible for accomplishing the Companys strategic objectives.
There is a clear division of responsibilities between top management positions. The Company has an organization structure that is well
documented and clearly establishes the job description and authority limits between the senior management, line management and
executive employees. Signicant changes to the organization structure including, amongst others, the Senior Management Team, Invitees
and other Heads of Departments are communicated to the staff.
The Authority Grid of the Company, which essentially is a culmination of the various authority limits delegated to the Board as well as the
Chief Executive Ofcer, is in place. The Grid covers business strategy and growth including capital requirements and investment vehicles,
people, risk, donations, appointment of consultants and operational matters such as balance sheet management, transaction approval
and write-offs.
All disclosures of interests in credit facilities and property under Sections 54 and 55 of the Insurance Act, 1996, were made consistently by
the Directors and relevant ofcers of the Company. All Tender, Investment activities and related-party transactions of the Company were
conducted at arms length and on commercial terms.
40
PART B. MANAGEMENT ACCOUNTABILITY (continued)
All policies relating to underwriting, claims, reinsurance and corporate communications were approved by the Board. The policies on
corporate communications and reinsurance are reviewed annually.
The business goals, annual budget, business plans and goals setting are reviewed by the CEO with the Senior Management Team annually
and shared with the relevant executives. The same information is also made available to all staff via the StaffNet.
PART C. CORPORATE INDEPENDENCE
The Company has met all the requirements of BNM/RH/GL 003-3 (Consolidated) on related party transactions of a material nature. All
material related party transactions are disclosed in the audited nancial statements in accordance with FRS 124. Please refer to Note 31
in the Companys nancial statements. The Board has set a more stringent requirement that all related party transactions irrespective of
materiality be submitted to the Audit Committee for review prior to their submission to the Board for approval/notation.
PART D. INTERNAL CONTROLS AND OPERATING RISK MANAGEMENT
The Board has overall oversight responsibility to ensure that the Company maintains an adequate system of internal controls and that the
Company has effective and efcient operations, risk management and internal controls, as well as procedures to ensure compliance with
laws, regulations, internal guidelines and requirements to safeguard the assets of the Company and stakeholders interests.
The Investment authority limits for exposure are set at various levels with limits, which are more stringent than the statutory/regulatory limits
prescribed, as set out in the Authority Grid. Although the Board approved the Offshore Investment Foreign Exchange Risk Management
Framework governing the use of derivatives in hedging offshore investments, the Company currently does not have any derivative positions.
The Company has complied with the limits pursuant to BNMs Guidelines on Risk-Based Capital Framework for Insurers. Investment limits
and transactions are monitored by the Compliance Department.
For reinsurance programme, a Reinsurance Management Strategy (RMS) for the insurance risks covered by the Company is in place. The
RMS denes the responsibility of the Board/Management in managing and operating the reinsurance programme. Ceding of risks must
comply with the Company Limit Framework and waivers from Group Ofce is required for breaches of limits.
All new life insurance products are governed by the Companys Product Development and Pricing Policy. All products launched by the
Company will require prior approvals by a Management Committee and Group Actuarial. All new life insurance products have been
certied by the Appointed Actuary. A product risk assessment also forms part of the process for new product approvals which includes
considerations on risks relating to pricing, investment, marketing and support for the product.
Actuarial Department, together with Investment and Risk Management Departments, conducts half-yearly stress test to ascertain the
Companys nancial condition under various risk scenarios.
The Directors, CEO and Senior Management of the Company are committed to maintaining a risk-conscious culture in the Company. The
GEH Enterprise Risk Management Framework and other supplementary risk management frameworks have been adopted and they provide
broad guiding principles and the minimum standards on risk management. The Framework also afrms the role and responsibilities for
risk management and establishes the monitoring and reporting requirements, which are all aimed at embedding sound risk management
practices and culture within the business and ensuring that the Company continues to expand its business with the right risk management
discipline, practices and processes in place. Some initiatives undertaken include the bi-monthly Enterprise Risk Dashboard, fraud and
complaints reports to the Board of Directors and monthly limits report on investment to the Asset Liability Committee.
The disclosures of the Companys risk management policies are set out under Note 32 in the Companys nancial statements.
Internal Audit
The Company has an Internal Audit Department, which assists the Audit Committee in discharging its duties and responsibilities. The
requirements of the BNM Guidelines on Internal Audit Function of Licensed Institutions (BNM/RH/GL 013-4) have been met. The Audit
Committee reviews the yearly internal audit plan and the audit reports and follow-up actions on audit observations made by the Internal
Auditors.
41
PART D. INTERNAL CONTROLS AND OPERATING RISK MANAGEMENT (continued)
Internal Audit (continued)
Continuous assessment of the effectiveness and adequacy of internal controls, which includes an independent examination of controls
by internal audit function, ensures that corrective actions, where necessary, are taken in a timely manner. All audit reports are submitted
to the Audit Committee, Group Audit, CEO and Management of the unit being audited within one month of completion of eld work.
Audit ndings and recommendations are communicated to Senior Management and monitored until all audit ndings are followed-up
and resolved. The activities of the Audit Committee are submitted annually to BNM.
In terms of segregation of duties, procedures are in place to ensure that staff are not assigned with potential conicting responsibilities,
relating to amongst others, approval, disbursements and administration of policies, premium or investment matters.
PART E. PUBLIC ACCOUNTABILITY AND FAIR PRACTICES
The Company has complied with the provisions relating to policies under Part XII of the Insurance Act, 1996. All of the Companys staff and
members of the eld force are required to comply with the Companys internal policy and with the Code of Ethics and Conduct issued by
BNM as well as the circulars of Life Insurance Association of Malaysia. The Company enforces a block leave policy and discourages siblings
and spouses from working together in the same department or handling the same function.

Members of the public are made aware of avenues under which they can appeal against the Companys practices or decisions, if required,
by alerting them via the policy contracts to the existence of the Financial Mediation Bureau and BNMs Customer Services Bureau. This is
in compliance with the requirements of BNM/RH/GL 003-9 on claims settlement practices.
The BNM Guidelines on Unfair Practices in Insurance Business, BNM/RH/GL 003-6 was issued as part of a cohesive effort to promote
higher standards of transparency, professionalism, greater market discipline and accountability in the conduct of insurance business and
protection of policy owners. The Company has implemented measures to enhance compliance of requirements prescribed in BNM/RH/GL
003-6. As part of its commitment and accountability to provide effective and fair services, a Centralised Complaint Unit was established
in accordance with the BNMs Circular on Establishment of a Centralised Complaint Unit by Insurer, issued in year 2003.
All sales illustrations, marketing materials and policy contracts of products are in compliance with requirements by BNM and led with
BNM for approval.
The Company has established an Anti-Money Laundering Framework in accordance with the relevant BNM Guidelines and Circulars to
be adhered to by all staff, agents, brokers and other intermediaries so as to prevent the Company from being used as an intermediary in
any money laundering of funds in the nancial system. The Company is committed in implementing measures towards fullling its duty of
vigilance and diligence on anti-money laundering.
PART F. FINANCIAL REPORTING
The Board has overall oversight responsibility for ensuring that the Companys accounting records are properly kept and that the Companys
nancial statements are prepared in accordance with approved accounting standards and in compliance with the regulatory and statutory
requirements in Malaysia so as to give a true and fair view of the Companys nancial position.
The Board and the Audit Committee are provided with regular comprehensive information on the nancial reports, any variances and
analysis of the nancial data of the Company.
On a monthly basis, the business and operational performance reports are submitted to the Senior Management Team for review and
minutes of the various risk oversight committees are tabled at the Board Risk Committee, Asset Liability Committee and the Board, as
appropriate.
The abbreviated nancial statements of the Company are published in the national press and copies are also displayed at all branch ofces
and posted onto the Companys website.
42
Statement By Directors
Pursuant to Section 169(15) of the Companies Act, 1965
We, Lee Kong Yip and Koh Yaw Hui, being two of the Directors of Great Eastern Life Assurance (Malaysia) Berhad, do hereby state that, in
the opinion of the Directors, the accompanying nancial statements set out on pages 45 to 119 are drawn up in accordance with Financial
Reporting Standards in Malaysia, as modied by Bank Negara Malaysia guidelines and the Companies Act, 1965 so as to give a true and
fair view of the nancial position of the Company as at 31 December 2010 and of the nancial performance and the cash ows of the
Company for the year then ended.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 31 January 2011.
Lee Kong Yip Koh Yaw Hui
43
Statutory Declaration
Pursuant to Section 169(16) of the Companies Act, 1965
I, Lee Yee Lam, being the ofcer primarily responsible for the nancial management of Great Eastern Life Assurance (Malaysia) Berhad,
do solemnly and sincerely declare that the accompanying nancial statements set out on pages 45 to 119 are in my opinion, correct and
I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations
Act, 1960.
Subscribe and solemnly declared by the abovenamed
Lee Yee Lam at Kuala Lumpur in the Federal Territory on
31 January 2011 Lee Yee Lam
Before me,
44
Independent Auditors Report
To The Members Of Great Eastern Life Assurance (Malaysia) Berhad (Incorporated in Malaysia)
Report on the nancial statements
We have audited the nancial statements of Great Eastern Life Assurance (Malaysia) Berhad, which comprise the balance sheet as
at 31 December 2010, and the income statement, statement of comprehensive income, statement of changes in equity and cash ow
statement for the Company for the year then ended, and a summary of signicant accounting policies and other explanatory notes, as set
out on pages 45 to 119.
Directors responsibility for the nancial statements
The directors of the Company are responsible for the preparation and fair presentation of these nancial statements in accordance
with Financial Reporting Standards, as modied by Bank Negara Malaysia guidelines and the Companies Act, 1965 in Malaysia. This
responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of
nancial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditors responsibility
Our responsibility is to express an opinion on these nancial statements based on our audit. We conducted our audit in accordance with
approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance whether the nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nancial statements. The
procedures selected depend on our judgment, including the assessment of risks of material misstatement of the nancial statements,
whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Companys preparation
and fair presentation of the nancial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as
evaluating the overall presentation of the nancial statements.
We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the nancial statements have been properly drawn up in accordance with Financial Reporting Standards, as modied by
Bank Negara Malaysia guidelines and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the nancial position of
the Company as at 31 December 2010 and of its nancial performance and cash ows for the year then ended.
Report on other legal and regulatory requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that in our opinion, the accounting and
other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions
of the Act.
Other matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in
Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Ernst & Young Choong Mei Ling
AF: 0039 No. 1918/09/12(J)
Chartered Accountants Chartered Accountant
Kuala Lumpur, Malaysia
31 January 2011
45
Balance Sheet
as at 31 December 2010
2010 2009 1.1.2009
Note RM000 RM000 RM000
(Restated) (Restated)
ASSETS
Property and equipment 3 530,958 550,823 569,263
Investment properties 4 510,585 502,485 467,150
Prepaid land lease payments 5 18,043 18,189 17,953
Investments 6 47,378,458 41,982,178 36,875,628
Malaysian Government securities 8,150,412 7,685,431 8,486,081
Debt securities 22,162,921 19,130,310 15,535,384
Equity securities 12,279,472 8,737,526 6,392,871
Unit and property trust funds 333,978 119,407 47,923
Loans 3,977,633 4,161,037 4,038,996
Deposits with nancial institutions 457,552 2,141,140 2,344,178
Embedded derivatives 16,490 4,455 30,195
Derivative - 2,872 -
Reinsurance assets 7 57,395 65,977 45,668
Insurance receivables 8 287,902 267,022 248,538
Other receivables 9 485,838 340,750 351,912
Tax recoverable - - 35,037
Deferred tax assets - - 16,665
Cash and bank balances 27,669 82,119 36,876
TOTAL ASSETS 49,296,848 43,809,543 38,664,690
EQUITY, POLICYHOLDERS FUNDS AND LIABILITIES
Share capital 10 100,000 100,000 100,000
Retained earnings 721,680 944,641 438,897
Other reserves 15,529 6,127 6,602
TOTAL EQUITY 837,209 1,050,768 545,499
Insurance contract liabilities 11 46,625,778 41,236,237 36,892,284
Agents retirement benet 12 515,111 466,220 438,618
Deferred tax liabilities 13 527,021 322,904 186,814
Other nancial liabilities 14 94,550 15,809 4,482
Insurance payables 15 178,519 141,141 148,871
Tax payable 71,891 134,536 116,776
Other payables 16 446,769 441,928 331,346
TOTAL LIABILITIES 48,459,639 42,758,775 38,119,191
TOTAL EQUITY, POLICYHOLDERS FUND AND LIABILITIES 49,296,848 43,809,543 38,664,690
The Balance Sheet of the Company presented by funds is disclosed in Note 36.
The accompanying notes form an integral part of the nancial statements
46
Income Statement
for the year ended 31 December 2010
2010 2009
Note RM000 RM000
Operating revenue 17 6,668,946 6,229,047
Gross earned premiums 18(a) 4,890,825 4,588,773
Premiums ceded to reinsurers 18(b) (102,990) (92,825)
NET EARNED PREMIUMS 4,787,835 4,495,948
Investment income 19 1,778,121 1,640,274
Realised gains and losses 20 483,725 433,853
Fair value gains and losses 21 818,572 (460,348)
Increase in provision of impairment
Quoted investments 4,264 (25,145)
Unquoted investments (33,002) (2)
Fee and commission income 22 44,075 41,802
Other operating revenue 651 1,103
OTHER REVENUE 3,096,406 1,631,537
Gross benets and claims paid 23(a) (3,005,273) (2,717,129)
Claims ceded to reinsurers 23(b) 59,610 67,620
Gross change to contract liabilities 23(c) (2,977,572) (1,643,146)
Change in contract liabilities ceded to reinsurers 23(d) (9,678) 7,685
NET CLAIMS (5,932,913) (4,284,970)
Fee and commission expense (855,344) (790,738)
Management expenses 24 (313,249) (290,845)
Other operating expenses (7,161) -
OTHER EXPENSES (1,175,754) (1,081,583)
Prot before taxation 775,574 760,932
Taxation 25 (348,969) (255,188)
Net prot for the year 426,605 505,744
Earnings per share (sen)
Basic 26 427 506
The Income Statement of the Company presented by funds is disclosed in Note 36.
47
Statement of Comprehensive Income
2010 2009
RM000 RM000
Net prot for the year 426,605 505,744
Other comprehensive income:
Available-for-sale fair value reserves
Net gain arising during the year 18,314 5,375
Net realised gain transferred to Income Statement (Note 20) (5,197) (4,813)
13,117 562
Tax effects thereon (Note 13) (3,681) (1,037)
9,436 (475)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 436,041 505,269
48
Statement Of Changes In Equity
Non-Distributable Distributable
Available-
for-sale Fair
Share Value Retained Total
Capital Reserves Earnings Equity
Note RM000 RM000 RM000 RM000
At 1 January 2009 100,000 6,602 438,897 545,499
Total comprehensive income for the year - (475) 505,744 505,269
At 31 December 2009 100,000 6,127 944,641 1,050,768
At 1 January 2010 100,000 6,127 944,641 1,050,768
Effects due to adoption of FRS 139 - (34) - (34)
At 1 January 2010 (restated) 100,000 6,093 944,641 1,050,734
Total comprehensive income for the year - 9,436 426,605 436,041
Transfer from General Insurance fund - - 434 434
Dividends paid during the year 27 - - (650,000) (650,000)
At 31 December 2010 100,000 15,529 721,680 837,209
49
Cash Flow Statement
2010 2009
Note RM000 RM000
Operating Activities
Cash used in operating activities 28 (869,244) (1,370,312)
Dividend/distribution income received 329,199 260,999
Interest/prot income received 1,435,065 1,342,036
Rental income on investment properties received 61,993 61,206
Agents retirement benet paid (23,666) (22,570)
Income tax paid (306,564) (194,185)
Net cash ow from operating activities 626,783 77,174
Investing Activities
Proceeds from disposal of property and equipment 15 923
Purchase of property and equipment (31,887) (32,474)
Purchase of investment properties (416) (380)
Net cash ows from investing activities (32,288) (31,931)
Financing Activities
Dividends paid to equity holders (648,945) -
Net cash ows from nancing activities (648,945) -
Net (decrease)/increase in cash and cash equivalents (54,450) 45,243
Cash and cash equivalents at beginning of year 82,119 36,876
Cash and cash equivalents at end of year 27,669 82,119
Cash and cash equivalents comprise:
Cash and bank balances 27,669 82,119
50
Notes To The Financial Statements
1. CORPORATE INFORMATION
The Company is an unquoted public limited liability company, incorporated and domiciled in Malaysia. The registered ofce of the
Company is located at Level 20, Menara Great Eastern, 303 Jalan Ampang, 50450 Kuala Lumpur.
The principal activity of the Company is the underwriting of life insurance business.
There has been no signicant change in the nature of the activity during the nancial year.
The immediate holding company is Great Eastern Capital (Malaysia) Sdn Bhd, a company incorporated in Malaysia. The intermediate
holding company is The Great Eastern Life Assurance Company Limited, a company incorporated in the Republic of Singapore. The
ultimate holding company is Oversea-Chinese Banking Corporation Limited (OCBC), a public-listed company incorporated in the
Republic of Singapore.
The nancial statements are authorised for issue by the Board of Directors in accordance with a resolution of the directors on 31
January 2011.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION
The nancial statements comply with the Financial Reporting Standards (FRS) in Malaysia as modied by Bank Negara
(BNM) and the provisions of the Companies Act, 1965, the Insurance Act, 1996 and Guidelines/Circulars issued by BNM.
At the beginning of the current nancial year, the Company had fully adopted the new and revised FRSs which are mandatory
for nancial periods beginning on or after 1 January 2010. The signicant accounting policies adopted are consistent with
those applied for the previous nancial year, unless otherwise stated in Note 2.4.
The nancial statements of the Company have also been prepared on a historical cost basis, except for investment properties,
insurance liabilities as specied in the Risk-based Capital Framework (The Framework) issued by BNM and those nancial
instruments that have been measured at their fair values in accordance with FRS 139 Financial Instruments - Recognition and
Measurement which became effective from 1 January 2010.
The Company has met the minimum capital requirements as prescribed by The Framework as at the balance sheet date.
The nancial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand (RM000)
except when otherwise indicated.
2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Property and Equipment and Depreciation
Property and equipment are stated at cost less accumulated depreciation and impairment losses. The initial cost of
property and equipment comprises its purchase price, including non-refundable taxes and any costs to enhance the
working condition of the asset for its intended use. Expenditure incurred after the property and equipment have been
put into operation, such as repairs and maintenance and overhaul costs, is charged to the prot or loss in the period
in which the costs are incurred. Where the expenditure has resulted in an increase in the future economic benets
expected to be obtained from the use of an item of property and equipment beyond its originally assessed standard of
performance, the expenditure is capitalised as an additional cost of property and equipment.
51
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Property and Equipment and Depreciation (continued)
Depreciation of property and equipment is calculated on a straight-line basis to write off the cost of each amount to its
residual value over its estimated useful life. No depreciation is provided for freehold land and capital work in progress.
The annual depreciation rates are:
Buildings - Owner Occupied Properties 2%
Ofce furniture and ttings 10%
Computer equipment 20 - 33%
Software development costs 10%
Motor vehicles 20%
Ofce machinery 20%
Building plant and equipment 6 - 7%
Leasehold buildings are depreciated over their estimated useful lives or over the remaining lease term of the leasehold
land on which the building resides, if the remaining lease term of the leasehold land is shorter than the estimated useful
life of the building.
Software development costs are incurred for the development of software for the life assurance administration system
and the distribution channel management system. These costs are classied as part of property and equipment and
depreciated over a period of 10 years on a straight line basis from the date of system commissioning.
The residual values, useful life and depreciation method are reviewed at each nancial year-end to ensure that the amount,
method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of
the future economic benets embodied in the items of property and equipment.
An item of property and equipment is derecognised upon disposal or when no future economic benets are expected
from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the prot or loss.
Included in the Life Funds property and equipment are freehold land, and leasehold and freehold buildings occupied
for own use for the operations of the Company. Leasehold land are classied as prepaid lease payments as described in
Note 2.2(l).
(b) Investments and Financial Assets
The Company classies its investments into nancial assets at fair value through prot or loss (FVTPL), loans and other
receivables (LAR) and available-for-sale nancial assets (AFS). The classication depends on the purpose for which
the investments were acquired or originated.
Financial assets are classied as fair value through prot or loss where the Companys documented investment strategy
is to manage nancial assets on a fair value basis, because the related liabilities are also managed on this basis.
The available-for-sale category is used when the relevant liabilities (including shareholders funds) are passively managed
and/or carried at amortised cost. All regular way purchases and sales of nancial assets are recognised on the trade date
which is the date that the Company commits to purchase or sell the asset. Regular way purchases or sales of nancial
assets require delivery of assets within the period generally established by regulation or convention in the market place.
52
(b) Investments and Financial Assets (continued)
(i) Fair Value Through Prot and Loss (FVTPL)
Assets stated at FVTPL include nancial assets held for trading and those designated at fair value through prot or
loss at inception. Investments typically bought with the intention to sell in the near future are classied as FVTPL. For
investments designated at fair value through prot or loss, the following criteria must be met:
- the designation eliminates or signicantly reduces the inconsistent treatment such as asset liability mismatch,
that would otherwise arise from measuring the assets or liabilities or recognising gains or losses on a different
basis, or
- the assets and liabilities are part of a group of nancial assets, nancial liabilities or both which are managed
and their performance evaluated on a fair value basis, in accordance with a documented risk management or
investment strategy.
These investments are initially recorded at fair value. Subsequent to initial recognition, these investments are
remeasured at fair value. Fair value adjustments and realised gains and losses are recognised in prot or loss.
Financial assets classied as FVTPL include xed income securities, derivatives, and embedded derivatives.
Investments under unit-linked funds are designated as FVTPL at inception as they are managed and evaluated on a
fair value basis in accordance with the respective investment strategy and mandate.
Derivatives are nancial instruments or contracts where its values vary according to changes in interest rate, foreign
exchange rate, credit spread or other variables. Embedded derivatives are hybrid nancial instruments that include
a non-derivative host contract.
(ii) Loans and Receivables (LAR)
LAR are non-derivative nancial assets with xed or determinable payments that are not quoted in an active market.
These investments are initially recognised at cost, being the fair value of the consideration paid for the acquisition
of the investment. All transaction costs directly attributable to the acquisition are also included in the cost of the
investment. After initial measurement, loans and receivables are measured at amortised cost, using the effective
yield method, less provision for impairment. Gains and losses are recognised in prot or loss when the assets are
derecognised or impaired, as well as through the amortisation process.
(iii) Available-for-Sale nancial assets (AFS)
AFS are non-derivative nancial assets not classied in any of the preceeding asset categories.
After initial recognition, AFS are remeasured at fair value. Any gains or losses from changes in fair value of the
nancial assets are recognised in the fair value reserve in the Statement of Comprehensive Income or Insurance
Contract Liabilities, except for impairment losses, foreign exchange gains and losses on monetary instruments and
interest calculated using the effective interest method which are recognised in the prot or loss. The cumulative gain
or loss previously recognised in equity is recognised in the prot or loss when the nancial asset is derecognised.
(c) Financial Liabilities and Other Insurance Payables
Financial liabilities and insurance payables within the scope of FRS139 and FRS 4 respectively are recognised on the
balance sheet when the Company becomes a party to the contractual obligations of the nancial instrument.
Financial liabilities are recognised when due and measured on initial recognition at the fair value of the consideration
received plus directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised
cost using the effective yield method, except for derivatives which are measured at fair value.
A nancial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. Gains or
losses are recognised in the prot or loss.
53
(d) Fair value of Financial Assets at FVTPL and AFS
The fair value of nancial assets that are actively traded in organised nancial markets is determined by reference to
quoted market bid prices for assets at the close of business on the balance sheet date.
For investments in quoted unit and real estate investment trusts, fair value is determined by reference to published net
assets value. Investments in equity that do not have quoted market price in an active market and whose fair value cannot
be reliably measured will be stated at cost.
For nancial instruments where there is no active market such as unquoted xed income securities i.e. unquoted bonds,
the estimated fair values is based on the average prices obtained from three Banks which are principal dealers.
If the fair value cannot be measured reliably, these nancial instruments are measured at cost, being the fair value of
the consideration paid for the acquisition of the instrument or the amount received on issuing the nancial liability. All
transaction costs directly attributable to the acquisition are also included in the cost of the investment.
(e) Impairment for Financial Assets
The Company assesses at each balance sheet date whether there is any objective evidence that a nancial asset or group
of nancial assets is impaired.
Objective evidence that a nancial asset is impaired includes observable data about loss events like signicant nancial
difculty of the issuer or obligor; signicant adverse changes in the business environment in which the issuer or obligor
operates and the disappearance of an active market for that nancial asset because of nancial difculties which indicate
that there is measurable decrease in the estimated future cash ows. However, it may not be possible to identify a single,
discrete event that caused the impairment. Rather, the combined effect of several events is considered in determining
whether an asset is impaired.
Assets Carried at Amortised Cost
If there is objective evidence that an impairment loss on assets carried at amortised cost has been incurred, the amount
of the impairment loss is measured as the difference between the assets carrying amount and the present value of
estimated future cash ows discounted at the nancial assets original effective interest rate/ yield. The carrying amount
of the asset is reduced and the loss is recorded in prot or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the
extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of loss
is recognised in the prot or loss.
Assets Carried at Cost
If there is objective evidence that an impairment loss on a nancial asset carried at cost has been incurred, the carrying
amount will be written down to the recoverable amount. Such impairment losses are not reversed in subsequent
periods.
AFS investments
If an AFS nancial asset is impaired, an amount comprising the difference between its cost (net of any principal repayment
and amortisation) and its current fair value, less any impairment loss previously recognised in prot or loss, is transferred
from other comprehensive income to prot or loss. Reversals in respect of equity instruments are not recognised in prot
or loss. Reversals of impairment losses on debt instruments classied as AFS are reversed through prot or loss if the
increase in the fair value of the instruments can be objectively related to an event occurring after the impairment losses
were recognised in prot or loss.
54
(e) Impairment for Financial Assets (continued)
AFS investments (continued)
When assessing the impairment of an equity instrument, the Company considers, in addition to observable data about
loss events, whether there is signicant or prolonged decline in the fair value of the equity instrument, and whether
the cost of the investment in the equity instrument may be recovered. Where there is evidence that the cost of the
investment in the equity instrument may not be recovered, impairment loss is provided.
(f) Financial Instruments : Derecognition of Financial Assets and Liabilities
A nancial asset is derecognised when:
- The contractual right to receive cash ows from the nancial asset expired
- The Company retains the contractual rights to receive cash ows from the asset but has assumed an obligation to
pay them in the full without material delay to a third party
- The Company has transferred its rights to receive cash ows from the asset and either (a) has transferred substantially
all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards
of the asset, but has transferred control of the asset.
Where the Company has transferred its rights to receive cash ows from an asset and has neither transferred nor
retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised
to the extent of the Companys continuing involvement in the asset. Continuing involvement that takes the form of
a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the
maximum amount of consideration that the Company could be required to repay.
Where continuing involvement takes the form of a written and/ or purchased option on the transferred asset, the extent
of the Companys continuing involvement is the amount of the transferred asset that the Company may repurchase,
except that in the case of a written put option on an asset measured at fair value, the extent of the Companys continuing
involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.
On derecognition of a nancial asset in its entirety, the difference between the carrying amount and the sum of (a) the
consideration received (including any new asset obtained less any new liability assumed) and (b) any cumulative gain or
loss that has been recognised directly in equity is recognised in the prot or loss. A nancial liability is derecognised when
the obligation under the liability is discharged, cancelled or expired.
Where an existing nancial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modied, such an exchange or modication is treated as a derecognition
of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is
recognised in the prot or loss.
(g) Investment Properties
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.
Such properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
properties are stated at fair value. Fair value is arrived at by reference to market evidence of transaction prices for
similar properties and is performed by registered independent valuers having an appropriate recognised professional
qualication and recent experience in the location and category of the properties being valued.
Gains or losses arising from changes in the fair values of investment properties are included in the Revenue Account in
the year in which they arise.
Investment properties are derecognised when either they have been disposed of or when the investment property is
permanently withdrawn from use and no future economic benet is expected from its disposal. Any gains or losses on the
retirement or disposal of an investment property are recognised in the Revenue Account in the year in which they arise.
55
(h) Impairment for Non-Financial Assets
The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication
of impairment. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts.
The recoverable amount is the higher of the net realisable value and the value in use, which is measured by reference
to discounted cash ows. Recoverable amounts are estimated for individual assets, or if it is not possible, for the cash-
generating unit.
An impairment loss is recognised in the prot or loss in the period in which it arises. Subsequent increases in the
recoverable amount of an asset is treated as reversal of the previous impairment loss and is recognised to the extent
of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no
impairment loss been recognised. A reversal of impairment loss is recognised in the prot or loss, unless the asset is
carried at revalued amount, in which case, such reversal is treated as a revaluation increase.
(i) Insurance Receivables
Insurance receivables are recognised when due. They are measured at initial recognition at the fair value received or
receivable. Subsequent to initial recognition, insurance receivables are measured at amortised cost, using effective
interest method. The carrying value of insurance receivables is reviewed for impairment whenever events or circumtances
indicate that the carrying amount may not be recoverable, with the impairment loss recognised in the prot or loss.
Insurance receivables are derecognised when the derecognition criteria for nancial assets, as described in Note 2.2 (f)
have been met.
(j) Product Classication
Insurance contracts are those contracts that transfer signicant insurance risk. An insurance contract is a contract under
which the Company (the insurer) has accepted signicant insurance risk from another party (the policyholders) by
agreeing to compensate the policyholders if a specied uncertain future event (the insured event) adversely affects the
policyholders. As a general guideline, the Company determines whether it has signicant insurance risk, by comparing
benets paid with benets payable if the insured event did not occur.
Investment contracts are those contracts that transfer signicant nancial risk. Financial risk is the risk of a possible future
change in one or more of a specied interest rate, nancial instrument price, commodity price, foreign exchange rate,
index of price or rates, credit rating or credit index or other variable, provided in the case of a non-nancial variable that
the variable is not specic to a party to the contract.
Once a contract has been classied as an insurance contract, it remains an insurance contract for the remainder of its life-
time, even if the insurance risk reduces signicantly during this period, unless all rights and obligations are extinguished
or expired. Investment contracts can, however, be reclassied as insurance contracts after inception if insurance risk
becomes signicant.
Insurance and investment contracts are further classied as being either with or without discretionary participation
features (DPF). DPF is a contractual right to receive, as a supplement to guaranteed benets, additional benets that
are:
(i) likely to be a signicant portion of the total contractual benets;
(ii) whose amount or timing is contractually at the discretion of the issuer; and that are contractually based on the:
- performance of a specied pool of contracts or a specied type of contract;
- realised and/or unrealised investment returns on a specied pool of assets held by the issuer; or
- the prot or loss of the company, fund or other entity that issues the contract.
56
(j) Product Classication (continued)
Surpluses in the DPF funds can be distributed on an approximate 90/10 basis in accordance to the Insurance Act 1996
to the policyholders and the shareholders respectively. The Company has the discretion over the amount and timing of
the distribution of these surpluses to policyholders. All DPF liabilities, including unallocated surpluses, both guaranteed
and discretionary, at the end of the reporting period are held within insurance or investment contract liabilities, as
appropriate.

For nancial options and guarantees which are not closely related to the host insurance contract and/or investment
contract with DPF, bifurcation is required to measure these embedded derivatives separately at fair value through prot
or loss. However, bifurcation is not required if the embedded derivative is itself an insurance contract and/or investment
contract with DPF, or if the host insurance contract and/or investment contract itself is measured at fair value through
prot or loss.
For the purpose of product classication under FRS 4, the Company adopts maximum policy benets as the proxy for
insurance risk and cash surrender value as the proxy for realisable value of the insurance contract on surrender. The
Company denes insurance risk to be signicant when the ratio of the insurance risk over the deposit component is not
less than 105% of the deposit component at any point of the insurance contract in force. Based on this denition, all
policy contracts issued by the Company are considered insurance contracts as at the date of this balance sheet.
(i) Types of Insurance Contracts
Insurance contract liabilities are classied into principal components as follows:
(a) Life Assurance fund contract liabilities comprising
- Participating Fund contract liabilities
- Non Participating Fund contract liabilities and
- Investment Linked Fund contract liabilities
(b) Reinsurance contracts
(ii) Life Assurance Contract Liabilities
Insurance contracts are recognised and measured in accordance with the terms and conditions of the respective
insurance contracts and are based on regulatory guidelines. Premiums, claims and benet payments, acquisition and
management expenses and valuation of future policy benet payments or premium reserve as the case may be, are
recognised in the Revenue Account of the respective funds.
Life insurance liabilities are recognised when contracts are entered into and premiums are charged. The liability
is determined as the sum of the present value of future guaranteed and, in the case of a participating life policy,
appropriate level of non-guaranteed benets and expected future management and distribution expenses, less
the present value of future gross consideration arising from the policy discounted at the appropriate risk discount
rate. The liability is based on best estimate assumptions and with due regard to signicant recent experience. An
appropriate allowance for provision of risk margin for adverse deviation from expected experience is made in the
valuation of non-participating life policies, the guaranteed benets liabilities of participating life policies, and non-
unit liabilities of investment-linked policies.
The liability in respect of policies of a participating insurance contract is taken as the higher of the guaranteed
benet liabilities or the total benet liabilities at the fund level derived as stated above.

In the case of a life policy where a part of, or the whole of the premiums are accumulated in a fund, the accumulated
amount, as declared to the policyholders, are set as the liabilities if the accumulated amount is higher than the
amounts as calculated using the gross premium valuation method.
57
(j) Product Classication (continued)
(ii) Life Assurance Contract Liabilities (continued)
In the case of short-term life policies covering contingencies other than death or survival, the liability for such
life insurance contracts comprises the provision for unearned premiums and unexpired risks, as well as for claims
outstanding, which includes an estimate of the incurred claims that have not yet been reported to the Company.
Adjustments to the liabilities at each reporting date are recorded in Revenue Account. Prots originating from
margins of adverse deviations on run-off contracts, are recognised in Revenue Account over the life of the contract,
whereas losses are fully recognised in Revenue Account during the rst year of run-off. The liability is derecognised
when the contract expires, is discharged or is cancelled.
The Company issues a variety of short and long duration insurance contracts which transfer risks from the
policyholders to the Company to protect policyholders from the consequences of insured events such as death,
disability, illness, accident, including survival. These contracts may transfer both insurance and investment risk or
insurance risk alone, from the policyholders to the Company.
For non-participating policy contracts, both insurance and investment risks are transferred from policyholders to
the Company. For non-participating policy contracts other than medical insurance policy contracts, the payout
to policyholders upon occurrence of the insured event is pre-determined and the transfer of risk is absolute. For
medical insurance policy contracts, the payout is dependent on the actual medical cost incurred upon occurrence
of the insured event.
Contracts which transfer signicant insurance risk alone from policyholders to the Company are commonly known
as investment linked policies. As part of the pricing for these contracts, the Company includes certain charges and
fees to cover for expenses and insured risk. The net investment returns derived from the variety of investment funds
as selected by the policyholder accrue directly to the policyholder.
A signicant portion of insurance contracts issued by the Company contain disecretionary participating features.
These contracts are classied as participating policies. In addition to the guaranteed benets payable upon occurence
of an insured event associated with human life such as death or disability, the contract entitles the policyholder
to receive benets which could vary according to investment performance of the fund. The Company does not
recognise the guaranteed portion separately from the discretionary participating feature.
The valuation of insurance contract liabilities is determined according to the Insurance Act and Regulations 1996,
BNMs Risk Based Capital (RBC) Framework for Insurers and FRS 4 (Insurance Contracts). The RBC Framework for
Insurers issued by BNM meets the requirement of Liability Adequacy Test under FRS 4.
The Company performs liability adequacy tests on its life insurance liabilities to ensure that the carrying amount
of provisions is sufcient to cover estimated future cash ows. When performing the liability adequacy test, the
Company discounts all contractual cash ows and compares this amount against the carrying value of the liability.
Any deciency is charged to the prot or loss.
(k) Reinsurance Contracts
The Company cedes insurance risk in the normal course of its life insurance business. Reinsurance assets represent
balances due from reinsurers. These amounts are estimated in a manner consistent with the outstanding claims provision
or settled claims associated with the reinsurance contracts.
Reinsurance assets are reviewed for impairment at each reporting date or more frequently when an indication of
impairment arises during the nancial year. Impairment occurs when there is objective evidence as a result of an event
that occured after initial recognition of the reinsurance asset that the Company may not receive part or all outstanding
amounts due under the terms of the contract.
58
(k) Reinsurance Contracts (continued)
Ceded reinsurance arrangements do not relieve the Company from its obligations to policyholders. Premiums and claims
are presented on a gross basis for both ceded and assumed reinsurance. Reinsurance assets or liabilities are derecognised
when the contractual rights are extinguished or expired.
(l) Leases
(i) Classication
A lease is recognised as a nance lease if it transfers substantially to the Company all the risks and rewards incidental
to ownership. Leases of land and buildings are classied as operating or nance leases in the same way as leases of
other assets and the land and buildings elements of a lease of land and buildings are considered separately for the
purposes of lease classication. All leases that do not transfer substantially all the risks and rewards are classied as
operating leases.
(ii) Finance Leases - the Company as Lessee
Useful lives of all leasehold buildings are shorter than the lease term of the leasehold land on which the buildings
are located. As such, all risks and rewards incidental to the ownership of such assets would be deemed to have
been substantially transferred to the Company at the end of their useful lives. All leasehold buildings are therefore
classied as nance lease in the nancial statements.
Buildings held under nance leases are recognised as assets in the Balance Sheet of the Company and measured in
accordance with FRS 116 - Property, Plant and Equipment and FRS 140 - Investment Properties.
The depreciation policy for leased assets is in accordance with that for depreciable property and equipment as
described in Note 2.2(a) and investment properties as described in Note 2.2(g).
(iii) Operating Leases - the Company as Lessee
Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevant lease.
In the case of a lease of land and buildings, the minimum lease payments or the up-front payments made are
allocated, whenever necessary, between the land and the buildings elements in proportion to the relative fair values
for leasehold interests in the land element and buildings element of the lease at the inception of the lease. The
up-front payment represents prepaid lease payments and are amortised on a straight-line basis over the lease term.
Long term prepaid lease payments refer to leases with an unexpired period of fty years or more.
(iv) Operating Leases - the Company as Lessor
Assets leased out under operating leases are presented on the balance sheets according to the nature of the assets.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease (Note
2.2(n)). Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised on a straight-line basis on the lease term.
(m) Life Insurance Underwriting Results
The surplus transferable from the Life Fund to the income statement is based on the surplus determined by an annual
actuarial valuation of the long term liabilities to policyholders.
(i) Gross Premium Income
Premium is recognised as soon as the amount of the premium can be reliably measured. First year premium is
recognised from inception date and subsequent premium is recognised when it is due.
At the end of the nancial year, all due premiums are accounted for to the extent that they can be reliably measured.
Premium not received on due date are recognised as revenue in the prot or loss and reported as outstanding
premiums in the balance sheet.
59
(m) Life Insurance Underwriting Results (continued)
(ii) Reinsurance Premiums
Gross reinsurance premiums are recognised as an expense when payable or on the date when the policy is
effective.
(iii) Creation of units
Net creation of units is recognised on a receipt basis.
(iv) Commission and Agency Expenses
Commission and agency expenses, which are costs directly incurred in securing premium on insurance policies, net
of income derived from reinsurers in the course of ceding of premium to reinsurers, are charged to the prot or loss
in the period in which they are incurred.
(v) Claims and Policy Benets
Claims and settlement costs that are incurred during the nancial period are recognised when a claimable event
occurs and/or when the insurer is notied.
Policy benets are recognised in the accounts when the policyholder exercises the option to deposit the cash
bonus and survival benet with the Company when the benets fall due. Policy benets bear xed interest rates as
determined by the Company from time to time.
Claims and provisions for claims arising on life insurance policies, including settlement costs, are accounted for
using the case basis method and for this purpose, the benets payable under a life insurance policy are recognised
as follows:
(a) maturity or other policy benet payments due on specied dates are treated as claims payable on the due
dates;
(b) death, surrender and other benets without due dates are treated as claims payable, on the date of receipt of
intimation of death of the assured or occurrence of contingency covered.
(n) Other Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benets will ow to the Company and the
revenue can be realiably measured. Revenue is measured at the fair value of consideration received or receivable.
Interest on loans are recognised on an accrual basis except where a loan is considered non-performing, i.e. where
repayments are in arrears for more than six months, in which case recognition of such interest is suspended. Subsequent
to suspension, income is recognised on a receipt basis until all arrears have been paid.
Other interest is recognised on a time proportion basis that takes into account the effective yield of the asset.
Rental is recognised on an accrual basis except where default in payment of rent has already occurred and rent due
remains outstanding for over six months, in which case recognition of rental income is suspended. Subsequent to
suspension, income is recognised on a receipt basis until all arrears have been paid.
Dividend is recognised when the right to receive payment is established.
All sales of investments are recognised on their trade dates i.e., the date the Company commits to sell the assets. Gains
or losses arising from the sale of investments are calculated as the difference between net sales proceeds and the original
or amortised cost and are credited or charged to the prot or loss.
60
(o) Fees and Commission Income
Fees and commission income comprise mainly of management fee and reinsurance commission income. Management
fee includes income earned from provision of investment management services for investment linked businesses. These
fees income is recognised as revenue over the period in which the services are rendered. If the fees are for services to be
provided in future periods, then they are deferred and recognised over those future periods.
(p) Agents Retirement Benets
Provision for agents retirement benets is calculated in accordance with the terms and conditions in the respective Life
Assurance Sales Representatives Agreement (Agreement).
The terms and conditions of the Agreement stipulate that upon the agent maintaining his position for the qualifying
year and achieving the required personal sales and minimum new business, the Company shall allocate to the agent a
deferred benet/ retirement benet.
The deferred benet/retirement benet accumulated as at the end of each year shall continue to accrue interest calculated
at the dividend rate as announced by the Employees Provident Fund for that year.
The accrued deferred benet shall only become payable provided the Agreement has been in force for certain continuous
contract years with the Company and the agent has attained the minimum age stipulated in the Agreement.
(q) Foreign Currencies
(i) Functional and Presentation Currency
The nancial statements of the Company are measured using the currency of the primary economic environment in
which the Company operates (the functional currency). The nancial statements are presented in Ringgit Malaysia
(RM), which is also the Companys functional currency.
(ii) Foreign Currency Transactions
In preparing the nancial statements of the Company, transactions in currencies other than the Companys functional
currency (foreign currencies) are recorded in the functional currency using the exchange rates prevailing at the
dates of transactions. At each balance sheet date, monetary items denominated in foreign currencies are translated
at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated
in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not translated. Exchange
differences arising on the settlement of monetary items and on the translation of monetary items are included in
the prot or loss for the year.
The principal exchange rates of foreign currency ruling at balance sheet date used are as follows:
31 Dec 2010 31 Dec 2009
RM RM
Singapore Dollar 2.40 2.45
United States Dollar 3.08 3.39
British Pound 4.75 5.47
Australian Dollar 3.13 3.04
Hong Kong Dollar 0.40 0.44
61
(r) Income Tax
Income tax on the prot or loss for the year comprises current and deferred tax. Current tax is the expected amount of
income taxes payable in respect of the taxable prot and surplus for the year and is measured using the tax rates that
have been enacted at the balance sheet date.
Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the
tax bases of assets and liabilities and their carrying amounts in the nancial statements. In principle, deferred tax liabilities
are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary
differences, unused tax losses and unused tax credits to the extent that it is probable that taxable prots will be available
against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred
tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognition
of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects
neither accounting nor taxable prot.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability
is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is
recognised in the prot or loss, except when it arises from a transaction which is recognised directly in equity, in which
case the deferred tax is also charged or credited directly in equity.
(s) Employee Benets
(i) Short term benets
Wages, salaries, bonus and social security contributions are recognised as expenses in the year in which the associated
services are rendered by employees of the Company. Short term accumulating compensated absences such as paid
annual leave are recognised when services are rendered by employees that increase their entitlement to future
compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised
when the absences occur.
(ii) Dened contribution plans
As required by law, companies in Malaysia make contributions to the national pension scheme, the Employees
Provident Fund (EPF). Such contributions are recognised as an expense in the prot or loss as incurred.
(t) Cash and Cash Equivalents
Cash and cash equivalents consist of cash and bank balances excluding xed deposits and repurchase agreements, which
have an insignicant risk of changes in value.
(u) Provisions
Provisions are recognised when the Company has a present obligation as a result of a past event and it is probable that
an outow of resources embodying economic benets will be required to settle the obligation, and a reliable estimate
of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reect the current best
estimate. If it is no longer probable that an outow of resources embodying economic benets will be required to settle
the obligation, the provision is reversed. Where the effect of the time value of money is material, provision is discounted
using a current pre-tax rate that reects the risk specic to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as nance cost.
62
2.3 STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
At the date of authorisation of these nancial statements, the following new FRSs and Interpretations, and amendments to
certain Standards and Interpretations were issued but not yet effective at 31 December 2010 and have not been applied by
the Company:
Effective for nancial periods beginning on or after 1 July 2010
FRS 1: First-time Adoption of Financial Reporting Standards
FRS 3: Business Combinations (revised)
FRS 127: Consolidated and Separate Financial Statements (revised)
Amendments to FRS 2: Share-based Payment
Amendments to FRS 5: Non-current Assets Held for Sale and Discontinued Operations
Amendments to FRS 138: Intangible Assets
Amendments to IC Interpretation 9: Reassessment of Embedded Derivatives
Amendment to IC Interpretation 15: Agreements for the Construction of Real Estate
IC Interpretation 12: Service Concession Arrangements
IC Interpretation 16: Hedges of a Net Investment in a Foreign Operation
IC Interpretation 17: Distributions of Non-cash Assets to Owners
Effective for nancial periods beginning on or after 1 January 2011
Amendments to FRS 1: Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters
Amendments to FRS 1: Additional Exemptions for First-time Adopters
Amendments to FRS 2: Group Cash-settled Share-based Payment Transactions
Amendments to FRS 7: Improving Disclosures about Financial Instruments
Amendments to FRSs contained in the document entitled Improvements to FRSs (2010)
Amendments to IC Interpretation 14: Prepayments of a Minimum Funding Requirement
IC Interpretation 4: Determining whether an Arrangement contains a Lease
IC Interpretation 18: Transfers of Assets from Customers
TR 3: Guidance on Disclosures of Transition to IFRSs
TR i-4: Shariah Compliant Sale Contracts
Effective for nancial periods beginning on or after 1 July 2011
IC Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments
Effective for nancial periods beginning on or after 1 January 2012
FRS 124: Related Party Disclosures (revised)
IC Interpretation 15: Agreements for the Construction of Real Estate
The Company plans to adopt the above pronouncements when they become effective in the respective nancial period except
for FRS 3, 127, Amendments to FRS 2, 5, 138, Amendments to IC Interpretation 14, 15, IC Interpretation 4, 12, 15, 16, 17,
18, 19, TR 3 and TR i-4. Unless otherwise described below, these pronouncements are expected to have no signicant impact
to the nancial statements of the Company upon their initial application.
IC Interpretation 9: Reassessment of Embedded Derivatives and Amendments to IC Interpretation 9 Reassessment of Embedded
Derivatives
This IC requires that there should be no subsequent reassessment of whether an embedded derivative should be separated
from the host contract after initial recognition, unless there have been changes to the terms of the contract that signicantly
modies the cash ows that otherwise would be required under the contract. The amendments to the IC claries that on
reclassication of a nancial asset out of the at fair value through prot or loss category all embedded derivatives within the
scope of this IC and FRS 139 have to be assessed and, if necessary, separately accounted for in nancial statements. The IC is
to be applied retrospectively.
63
2.4 CHANGES IN ACCOUNTING POLICIES AND EFFECTS ARISING FROM ADOPTION OF NEW AND REVISED FRSs AND
ISSUES COMMITTEES INTERPRETATION
The adoption of the new and revised FRSs and IC Interpretations which are mandatory for nancial period beginning on or
after 1 January 2010 did not have any signicant effect on the nancial performance or position of the Company except for
those discussed below:
(a) FRS 7 Financial Instruments: Disclosures
Prior to 1 January 2010, information about nancial instruments was disclosed in accordance with the requirements of
FRS 132 Financial Instruments: Disclosure and Presentation. FRS 7 introduces new disclosures to improve the information
about nancial instruments. It requires the disclosure of qualitative and quantitative information about exposure to risks
arising from nancial instruments, including specied minimum disclosures about credit risk, liquidity risk and market risk,
including sensitivity analysis to market risk.
(b) FRS 101 Presentation of Financial Statements (Revised)
The revised FRS 101 introduces changes in the presentation and disclosures of nancial statements. The revised Standard
separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions
with owners, with all non-owner changes in equity presented as a single line. The Standard also introduces the statement
of comprehensive income, with all items of income and expense recognised in prot or loss, together with all other items
of recognised income and expense recognised directly in equity, either in one single statement, or in two linked statements.
The Company have elected to present this statement in two linked statement.
In addition, a statement of nancial position is required at the beginning of the earliest comparative period following a
change in accounting policy, the correction of an error or the classication of items in the nancial statements.
The revised FRS 101 was adopted retrospectively by the Company.
(c) FRS 139 Financial Instruments: Recognition and Measurement
FRS 139 establishes principles for recognising, derecognising and measuring nancial assets, nancial liabilities and some
contracts to buy and sell non-nancial items. However, since the adoption of Risk-Based Capital (RBC) Framework
on 1 January 2009, certain principles in connection with the recognition, derecognition and measurement of nancial
instruments which are similar to those prescribed by FRS 139 have already been adopted by the Company. Therefore, the
adoption of FRS 139 on 1 January 2010 has resulted in changes in accounting policies mainly pertaining to the following:
(i) Investments measured at market bid prices
Upon the implementation of FRS 139, the Company has valued its quoted nancial instruments at market bid prices.
Prior to the implementation of FRS 139, these quoted nancial instruments were valued at market closing prices.
Quoted nancial instruments of the Company affected by the above requirement comprise mainly quoted equities,
unit and property trust funds.
Gain or losses arising from the change in fair value of quoted nancial instrumetns is recognised in the Available for
Sale Reserves, Unallocated surplus and Statement of Comprehensive Income.
The effects on the balance sheets and prot or loss are set out in Note 2.4(c)(iii).
64
ISSUES COMMITTEES INTERPRETATION (continued)
(c) FRS 139 Financial Instruments: Recognition and Measurement (continued)
(ii) Change in valuation of Negotiable Instruments of Deposit (NCDs)
Prior to the implementation of FRS 139, the Company valued its investment in NCDs at the lower of the face value
or fair value in aggregate. This was in compliance with the valuation method specied in the RBC Framework by Bank
Negara Malaysia (BNM) that became effective on 1 January 2009.
Upon adoption of FRS 139 on 1 January 2010, NCDs are valued at fair value. Investment in NCDs are classied as Fair
Value Through Prot and Loss (FVTPL) under Life Fund and Available For Sale (AFS) under Shareholders fund.
Gains or losses arising from the change in fair value of NCDs is recognised in the prot or loss.
The effects on the balance sheets and Revenue Account are set out in Note 2.4(c)(iii).
(iii) Summary of effects of change in accounting treatment on the current nancial years nancial statements
The following table presents the changes to the affected balance sheet items arising from the adoption of FRS 139
with effect from 1 January 2010. Pursuant to adoption of FRS 139, the resultant changes are reected in the respective
assets, Unallocated Surplus and Available For Sale Reserves as at 1 January 2010.
At 1.1.2010
(Decrease)/
Increase
As Previously Note 2.4 (c)
Stated (i) and (ii) As restated
Investments 41,982,178 (30,872) 41,951,306
Insurance contract liabilities 11 41,236,237 (28,362) 41,207,875
Deferred tax liabilities 13 322,904 (2,477) 320,427
Available for sale reserve, net of deferred tax 6,127 (34) 6,093
The following tables provide estimates of the extent to which each of the line items in the balance sheet and revenue
account for the nancial year ended 31 December 2010 are higher or lower than it would have been had the previous
policies been applied in the current nancial year.
1) Effects on Balance Sheet as at 31 December 2010
Higher
Note 2.4 (c)
(i) and (ii)
RM000
Investments 22,744
Insurance contract liabilities 20,889
Deferred tax liabilities 1,826
2) Effects on Statement of Comprehensive Income for nancial year ended 31 December 2010
Higher
Note 2.4 (c)
(i) and (ii)
RM000
Available for sale reserves, net of deferred tax 29
65
ISSUES COMMITTEES INTERPRETATION (continued)
(c) FRS 139 Financial Instruments: Recognition and Measurement (continued)
(iii) Summary of effects of change in accounting treatment on the current nancial years nancial statements (continued)
3) Effects on Income Statement for nancial year ended 31 December 2010
(Lower)/Higher
Note 2.4 (c)
(i) and (ii)
RM000
Fair value gains and losses (537)
Taxation 43
Prot before taxation 537
Net prot for the year (494)
(d) FRS 4 Insurance Contracts
FRS 4 introduces new disclosures to improve the information about the insurance contracts and related assets, liabilities,
income and expense. It requires the disclosure of qualitative and quantitative information about sensitivity and concentration
of exposures to risk arising from insurance contracts, credit risk, liquidity risk and market risk disclosures, reconciliations
of changes in insurance liabilities and reinsurance assets, the effect of changes in assumptions used to measure insurance
assets and insurance liabilities, showing separately the effect of each change that has a material effect on the nancial
statements and the objectives, policies and processes for managing risks arising from insurance contracts and the methods
used to manage those risks.
The new discosures are included throughout the notes to the nancial statements for the year ended 31 December
2010.
2.5 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
(a) Critical Judgements Made in Applying Accounting Policies
The following are judgements made by management in the process of applying the Companys accounting policies that
have signicant effect on the amounts recognised in the nancial statements.
(i) Classication between investment properties and property and equipment
The Company has developed certain criteria based on FRS 140 Investment Property in making judgement whether a
property qualies to be classied as an investment property. Investment property is a property held to earn rental or
for capital appreciation or both.
Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is
held for use in the production or supply of goods or services or for administrative purposes. If these portions could
be sold separately (or leased out separately under a nance lease), the Company would account for the portions
separately. If the portions could not be sold separately, the property is an investment property only if an insignicant
portion is held for use in the production or supply of goods or services or for administrative purposes. Judgement is
made on an individual property basis to determine whether ancillary services are so signicant that a property does
not qualify as investment property.
(ii) Impairment of Available-for-sale Assets
Signicant judgement is required to assess impairment for Available-for-Sale investments. The Company evaluates
the duration and extent to which the fair value of an investment is less than cost; the nancial health and near term
business outlook for the investee, including but not limited to factors such as industry and sector performance,
changes in technology and operational and nancial cash ow.
66
2.5 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
(a) Critical Judgements Made in Applying Accounting Policies (continued)
(iii) Insurance Contract Classication
Contracts are classied as insurance contracts where they transfer signicant insurance risk from the policyholder to
the Company. The Company exercises judgement about the level of insurance risk transferred. As a general guideline,
the Company determines whether it has signicant insurance risk by comparing benets paid with benets payable
if the insured event did not occur. These additional benets include claims liability and assessment costs, but exclude
loss of the ability to charge the policyholder for future services. The assessment covers the whole of the expected term
of the contract where such additional benets could be payable.
(iv) Impairment of Receivables
The Company assesses at each reporting date whether there is any objective evidence that a nancial asset is impaired.
To determine whether there is objective evidence of impairment, the Company complies with BNMs Guidelines on
Financial Reporting for Insurers (BNM/RH/GL003-28). According to the Guidelines, objective evidence of impairment is
deemed to exist where the nancial assets are individually assessed for impairment is past due for more than 90 days
or 3 months. Other factors considered by the Company are probability of insolvency or signicant nancial difculties
of the debtor and default or signicant delay in payments.
Where there is objective evidence of impairment, the Company will recognise the impairment loss in the prot or
loss.
(v) Judgement of Finance or Operating lease
The Company has entered into commercial property leases on its investment properties and certain self-occupied
properties. The Company evaluate whether the land and buildings are nance or operating leases based on terms
and condition of the lease arrangement. The Company will treat the arrangement as an operating lease based on the
following:
(i) The land titles do not pass to the Company
(ii) The rentals paid to the landlord for the commercial properties are increased to market rent at regular intervals and
the Company does not participate in the residual value of the building.
(b) Key Sources of Estimation Uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that
have a signicant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
nancial year are discussed below:
(i) Depreciation of property and equipment
The costs of a buildings equipment are depreciated on a straight line basis over the assets estimated useful lives.
The Company estimates the useful lives of these equipment to be within 15 to 20 years. These are common life
expectancies for a buildings equipment.
The cost of self-occupied properties is depreciated on a straight-line basis. The Company estimates the useful lives to
be 50 years.
(ii) Valuation of Life Insurance Contract Liabilities
The estimation of the ultimate liability arising from claims made under life insurance contracts is the Companys most
critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimation of
the liabilities that the Company will ultimately be required to pay as claims.
For life insurance contracts, estimates are made for future deaths, disabilities, morbidities, voluntary terminations,
investment returns and administration expenses. The Company relies on standard industry and reinsurance tables
which represent historical experiences, and makes appropriate adjustments for its respective risk exposures in deriving
the mortality, disability and morbidity estimates.
67
2.5 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
(b) Key Sources of Estimation Uncertainty (continued)
(ii) Valuation of Life Insurance Contract Liabilities (continued)
These estimates provide the basis in the valuation of the future benets to be paid to policyholders and ensure
adequate provision of reserve which are monitored against current and future premiums. For those contracts that
insure risk on longevity and disability, estimates are made based on recent past experience and emerging trends.
Epidemics and changing patterns of lifestyle could result in signicant changes to the expected future exposures.
At each reporting date, these estimates are assessed for adequacy and changes will be reected as adjustments to
insurance fund contract liabilities.
(iii) Agents Retirement Benet
Provision for agents retirement benet is calculated in accordance with the terms and conditions of the agreement,
which stipulate that upon the agent maintaining his position for the qualifying year and achieving the required
personal sales and minimum new business, the Company shall allocate to the agent a deferred benet/retirement
benet. Interest will be accrued based on an estimated rate at the end of the nancial year on the deferred benet/
retirement benet accumulated with adjustment made subsequent to the year end when the dividend rate is declared
by the Employees Provident Fund (EPF). Additional provision is made to cover estimated liability for future benets
payable in the event of death or total and permanent disablement of the eligible agents and the estimates are made
for future deaths, disabilities, investment returns and benets payable. The agents retirement benet shall become
vested and payable upon fullment of the stipulated conditions.
Judgement is required to estimate the provision to be made, based upon the likely fullment of the conditions and
occurrence of the claimable event.
At each reporting year, these estimates are reassessed for adequacy and changes will be reected as adjustments to
the provision.
3. PROPERTY AND EQUIPMENT
Buildings-
Owner Capital Ofce
Freehold Occupied Work-in- Motor Ofce Furniture Computer
Land Properties Progress Vehicles Machinery and Fittings Equipment Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
Cost
At 1 January 2010 13,861 393,574 1,215 1,699 74,368 49,884 321,110 855,711
Additions - 179 3,965 - 742 1,309 25,692 31,887
Disposal - - - - (13) - - (13)
Reclassication - 249 (1,262) - 419 1,233 (639) -
Transfer to investment
properties (Note 4) - - (97) - - - - (97)
Write-offs - - (35) - - - (50) (85)
At 31 December 2010 13,861 394,002 3,786 1,699 75,516 52,426 346,113 887,403
Accumulated
Depreciation
and Impairment
At 1 January 2010 - 85,623 - 1,026 45,335 24,749 148,155 304,888
Disposal - - - - (9) - - (9)
Depreciation charge
for the year - 7,894 - 214 5,448 4,471 33,539 51,566
At 31 December 2010 - 93,517 - 1,240 50,774 29,220 181,694 356,445
Net Book Value
At 31 December 2010 13,861 300,485 3,786 459 24,742 23,206 164,419 530,958
68
3. PROPERTY AND EQUIPMENT (continued)
Buildings-
Owner Capital Ofce
Freehold Occupied Work-in- Motor Ofce Furniture Computer
Land Properties Progress Vehicles Machinery and Fittings Equipment Total
Cost
At 1 January 2009 13,862 382,948 478 1,918 74,540 47,958 305,095 826,799
Additions - 10,369 1,891 741 274 1,912 17,287 32,474
Disposal (1) - - (960) (477) - - (1,438)
Reclassication - 257 (271) - 45 14 (45) -
Transfer to investment
properties (Note 4) - - (55) - - - - (55)
Write-offs - - (828) - (14) - (1,227) (2,069)
At 31 December 2009 13,861 393,574 1,215 1,699 74,368 49,884 321,110 855,711
Accumulated Depreciation
and Impairment
At 1 January 2009 - 77,742 - 1,441 40,445 20,482 117,426 257,536
Disposal - - - (650) (477) - - (1,127)
Depreciation charge for the year - 7,881 - 235 5,381 4,267 31,956 49,720
Write-offs - - - - (14) - (1,227) (1,241)
At 31 December 2009 - 85,623 - 1,026 45,335 24,749 148,155 304,888
Net Book Value
At 31 December 2009 13,861 307,951 1,215 673 29,033 25,135 172,955 550,823
Included in property and equipment of the Life fund are the cost of fully depreciated assets of RM101,803,081 (2009: RM91,323,202).
Included in property and equipment of the Life fund are properties with a total net book value amounting to RM20,957,949 (2009: RM20,972,116),
for which title deeds are still in the process of being transferred to the Life Fund.
4. INVESTMENT PROPERTIES
2010 2009
RM000 RM000
At 1 January 502,485 467,150
Additions from acquisitions 416 -
Transfer from property and equipment (Note 3) 97 55
Fair value changes (Note 21) 7,587 35,280
At 31 December 510,585 502,485
Investment properties are stated at fair value, which had been determined based on valuations performed by an external independent
valuer. The fair value changes are recorded in prot or loss.
69
5. PREPAID LAND LEASE PAYMENTS
2010 2009
RM000 RM000
Long term leasehold land
At 1 January 18,189 17,953
Additions - 380
Amortisation for the year (146) (144)
At 31 December 18,043 18,189
6. INVESTMENTS
As at 31 December 2010 As at 31 December 2009
Shareholders Shareholders
Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total
Malaysian
Government
securities 99,640 8,007,389 43,383 8,150,412 176,726 7,441,239 67,466 7,685,431
Debt securities 371,471 21,220,052 571,398 22,162,921 376,966 18,295,688 457,656 19,130,310
Equity securities 21,306 10,709,553 1,548,613 12,279,472 24,602 7,685,600 1,027,324 8,737,526
Unit and property
trust funds - 268,857 65,121 333,978 - 95,024 24,383 119,407
Loans - 3,977,633 - 3,977,633 - 4,161,037 - 4,161,037
Deposits with
nancial institutions 650 259,802 197,100 457,552 49,550 1,871,531 220,059 2,141,140
Embedded derivatives 50 6,830 9,610 16,490 - 3,323 1,132 4,455
Derivatives - - - - - 2,872 - 2,872
493,117 44,450,116 2,435,225 47,378,458 627,844 39,556,314 1,798,020 41,982,178

70
6. INVESTMENTS (continued)
As at 31 December 2010 As at 31 December 2009
Fund Life Fund Unit-linked Total Fund Life Fund Unit-linked Total
The Companys nancial
investments are
summarised by
categories as follows:

Loans and receivables
(LAR) 650 4,237,435 197,100 4,435,185 49,550 6,032,568 220,059 6,302,177
Available-for-sale
assets (AFS) 492,417 10,978,410 - 11,470,827 578,294 7,780,624 - 8,358,918
Fair value through
prot and
loss (FVTPL) 50 29,234,271 2,238,125 31,472,446 - 25,743,122 1,577,961 27,321,083
493,117 44,450,116 2,435,225 47,378,458 627,844 39,556,314 1,798,020 41,982,178
The following
investments mature
after 12 months:

FVTPL - 25,263,249 589,209 25,852,458 - 24,071,417 514,403 24,585,820
AFS 428,144 - - 428,144 497,300 - - 497,300
LAR - 632,140 - 632,140 - 661,943 - 661,943
428,144 25,895,389 589,209 26,912,742 497,300 24,733,360 514,403 25,745,063
(a) LAR
31 December 2010 31 December 2009
Funds Life Fund Unit-linked Total Funds Life Fund Unit-linked Total
Amortised cost/Cost
Fixed and call
deposits with:
Licensed banks 650 252,820 197,100 450,570 49,550 1,844,740 220,059 2,114,349
Others - 6,982 - 6,982 - 26,791 - 26,791
Policy loans - 3,345,416 - 3,345,416 - 3,271,971 - 3,271,971
Mortgage loans - 586,955 - 586,955 - 830,477 - 830,477
Secured loans - 45,248 - 45,248 - 58,570 - 58,570
Unsecured loans - 14 - 14 - 19 - 19
650 4,237,435 197,100 4,435,185 49,550 6,032,568 220,059 6,302,177
71
(a) LAR (continued)
Fair Value
Fixed and call
deposits with:
Licensed banks 650 252,820 197,100 450,570 49,550 1,844,740 220,059 2,114,349
Others - 6,982 - 6,982 - 26,791 - 26,791
Policy loans - 3,345,416 - 3,345,416 - 3,271,971 - 3,271,971
Mortgage loans - 608,319 - 608,319 - 850,465 - 850,465
Secured loans - 49,007 - 49,007 - 64,248 - 64,248
Unsecured loans - 14 - 14 - 19 - 19
650 4,262,558 197,100 4,460,308 49,550 6,058,234 220,059 6,327,843
The fair values of the LAR have been established by comparing current market interest rates for similar nancial instruments to the rates
offered when the LAR were rst recognised together with appropriate market credit adjustments.
(b) AFS

Amortised cost/Cost
Equity securities:
Quoted in Malaysia 14,954 5,469,935 - 5,484,889 21,261 4,314,199 - 4,335,460
Quoted outside
Malaysia - 669,966 - 669,966 - 282,718 - 282,718
Unquoted in Malaysia 292 167,445 - 167,737 292 200,447 - 200,739
Malaysian Government
securities 97,631 - - 97,631 176,959 - - 176,959
Debt securities:
Unquoted in Malaysia 359,563 - - 359,563 374,483 - - 374,483
Unit and property
trust funds:
Quoted in Malaysia - 160,888 - 160,888 - 16,083 - 16,083
Quoted outside
Malaysia - 66,198 - 66,198 - 55,769 - 55,769
472,440 6,534,432 - 7,006,872 572,995 4,869,216 - 5,442,211
72
(b) AFS (continued)
Fair Value
Equity securities:
Quoted in Malaysia 21,014 8,818,383 - 8,839,397 24,310 6,511,470 - 6,535,780
Quoted outside Malaysia - 1,723,725 - 1,723,725 - 973,683 - 973,683
Unquoted in Malaysia 292 167,445 - 167,737 292 200,447 - 200,739
securities 99,640 - - 99,640 176,726 - - 176,726
Debt securities:
Unquoted in Malaysia 371,471 - - 371,471 376,966 - - 376,966
Unit and property
trust funds:
Quoted outside
Malaysia - 88,651 - 88,651 - 80,668 - 80,668
492,417 10,978,410 - 11,470,827 578,294 7,780,624 - 8,358,918
(c) FVTPL

Cost
Held-for-Trading
Equity securities:
Quoted in Malaysia - - 1,259,353 1,259,353 - - 918,727 918,727
Quoted outside Malaysia - - 12,469 12,469 - - 10,039 10,039
Embedded derivatives 54 3,188 6,984 10,226 - 1,145 237 1,382
securities - - 43,238 43,238 - - 67,205 67,205
Debt securities:
Quoted in Malaysia - - - - - - 10 10
Unquoted in Malaysia - - 569,288 569,288 - - 465,525 465,525
Unit and property
trust funds:
Quoted in Malaysia - - 52,155 52,155 - - 20,512 20,512
Quoted outside
Malaysia - - 1,144 1,144 - - - -
54 3,188 1,944,631 1,947,873 - 1,145 1,482,255 1,483,400
73
(c) FVTPL (continued)

Cost (continued)
Designated upon
initial recognition
securities - 7,805,525 - 7,805,525 - 7,370,820 - 7,370,820
Debt securities:
Quoted in Malaysia - 286 - 286 - 1,348 - 1,348
Unquoted in Malaysia - 19,976,781 - 19,976,781 - 17,731,018 - 17,731,018
- 27,782,592 - 27,782,592 - 25,103,186 - 25,103,186
54 27,785,780 1,944,631 29,730,465 - 25,104,331 1,482,255 26,586,586
Fair Value
Held-for-Trading
Equity securities:
Quoted in Malaysia - - 1,535,584 1,535,584 - - 1,016,991 1,016,991
Quoted outside Malaysia - - 13,029 13,029 - - 10,333 10,333
Embedded derivatives 50 6,830 9,610 16,490 - 3,323 1,132 4,455
securities - - 43,383 43,383 - - 67,466 67,466
Debt securities:
Quoted in Malaysia - - 70 70 - - 85 85
Unquoted in Malaysia - - 571,328 571,328 - - 457,571 457,571
Unit and property
trust funds:
Quoted in Malaysia - - 63,927 63,927 - - 24,383 24,383
Quoted outside Malaysia - - 1,194 1,194 - - - -
Derivatives - - - - - 2,872 - 2,872
50 6,830 2,238,125 2,245,005 - 6,195 1,577,961 1,584,156
Designated upon
initial recognition
securities - 8,007,389 - 8,007,389 - 7,441,239 - 7,441,239
Debt securities:
Unquoted in Malaysia - 21,213,453 - 21,213,453 - 18,287,670 - 18,287,670
- 29,227,441 - 29,227,441 - 25,736,927 - 25,736,927
50 29,234,271 2,238,125 31,472,446 - 25,743,122 1,577,961 27,321,083
74
(d) Fair Values of Financial Investments
The following table show nancial investments recorded at fair value analysed by the different basis of fair values as follows:
AFS FVTPL Total
RM000 RM000 RM000
31 December 2010
Quoted market bid price 10,831,979 1,636,893 12,468,872
Valuation techniques - market observable inputs 471,111 29,835,553 30,306,664
Valuation techniques - non-market observable inputs 167,737 - 167,737
11,470,827 31,472,446 42,943,273
31 December 2009
Quoted market price 7,604,487 1,067,137 8,671,624
Valuation techniques - market observable inputs 553,692 26,253,946 26,807,638
Valuation techniques - non-market observable inputs 200,739 - 200,739
8,358,918 27,321,083 35,680,001
7. REINSURANCE ASSETS
2010 2009 1.1.2009
Life Fund RM000 RM000 RM000
Reinsurance of insurance contracts (Note 11) 57,395 65,977 45,668
8. INSURANCE RECEIVABLES
Life Fund 2010 2009
RM000 RM000
Due premiums including agents/brokers and co-insurers balances 290,893 262,834
Due from reinsurers and cedants 2,100 4,695
Allowance for impairment (5,091) (507)
287,902 267,022
9. OTHER RECEIVABLES
Shareholders
Fund Life Fund Unit-linked Total
RM000 RM000 RM000 RM000
At 31 December 2010
Income due and accrued 4,090 447,881 21,433 473,404
Other receivables 1,039 8,720 - 9,759
Amount due from related companies 2,675 - - 2,675
7,804 456,601 21,433 485,838
Receivable after 12 months 18 4,882 - 4,900
75
9. OTHER RECEIVABLES (continued)
Shareholders
RM000 RM000 RM000 RM000
At 31 December 2009
Income due and accrued 5,139 321,639 5,115 331,893
Other receivables 203 8,376 - 8,579
Amount due from related companies 278 - - 278
5,620 330,015 5,115 340,750
Receivable after 12 months 15 4,980 - 4,995
Related companies in these nancial statements refer to companies within the OCBC Group.
The amount due from related company is unsecured, interest-free and has no xed terms of repayment.
10. SHARE CAPITAL
2010 2009
No. of Shares No. of Shares
(000) RM000 (000) RM000
Authorised:
Ordinary shares of RM1 each At beginning and end of year 500,000 500,000 500,000 500,000
Issued and Paid-up:
Ordinary shares of RM1 each At beginning and end of year 100,000 100,000 100,000 100,000
11. INSURANCE CONTRACT LIABILITIES
Life Fund 2010 2009 1.1.2009
Re- Re- Re-
Gross Insurance Net Gross Insurance Net Gross Insurance Net
RM000 RM000 RM000 RM000 RM0Z00 RM000 RM000 RM000 RM000
Provision for
outstanding claims 3,479,616 (21,407) 3,458,209 3,101,860 (20,312) 3,081,548 2,754,414 (7,689) 2,746,725
Actuarial liabilities 29,297,652 (35,988) 29,261,664 26,111,045 (45,665) 26,065,380 22,656,733 (37,979) 22,618,754
Unallocated surplus 7,329,476 - 7,329,476 7,537,053 - 7,537,053 9,348,219 - 9,348,219
Available-for-sale
fair value reserves 4,105,438 - 4,105,438 2,707,534 - 2,707,534 926,614 - 926,614
Net asset value
attributable to
unitholders 2,413,596 - 2,413,596 1,778,311 - 1,778,311 1,205,870 - 1,205,870
General Insurance fund - - - 434 - 434 434 - 434
46,625,778 (57,395) 46,568,383 41,236,237 (65,977) 41,170,260 36,892,284 (45,668) 36,846,616
76
11. INSURANCE CONTRACT LIABILITIES (continued)
Gross Reinsurance
With DPF Without DPF Total With DPF Without DPF Total Net
RM000 RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 2010 37,228,583 4,007,654 41,236,237 (9,101) (56,876) (65,977) 41,170,260
Effects due to adoption of FRS 139:
Available-for-sale fair value reserves (net of
deferred tax (29,050) (769) (29,819) - - - (29,819)
Fair value measurement of FVTPL 779 678 1,457 - - - 1,457
At 1 January 2010 (restated) 37,200,312 4,007,563 41,207,875 (9,101) (56,876) (65,977) 41,141,898
Premiums received (Note 18) 3,567,172 1,323,653 4,890,825 (58,105) (44,885) (102,990) 4,787,835
Liabilities paid for death, maturities,
surrenders, benets and claims (Note 23) (2,501,994) (503,279) (3,005,273) 24,740 34,870 59,610 (2,945,663)
Policy movement 1,718,084 117,084 1,835,168 - 1,020 1,020 1,836,188
Interest rate (95) 42,243 42,148 - (255) (255) 41,893
Adjustments due to changes in assumptions:
Mortality/morbidity (11,812) (12,770) (24,582) - 9,781 9,781 (14,801)
Expenses 74,152 1,744 75,896 - - - 75,896
Lapse (4,577) (226) (4,803) - (868) (868) (5,671)
Others 41,288 - 41,288 - - - 41,288
Claims benet experience variation 395,416 (17,658) 377,758 31,680 10,604 42,284 420,042
Net asset value attributable to unitholders - 297,461 297,461 - - - 297,461
Net creation of units - 477,593 477,593 - - - 477,593
Net cancellation of units - (139,770) (139,770) - - - (139,770)
Available-for-sale fair value reserves 1,544,138 8,783 1,552,921 - - - 1,552,921
Unallocated surplus (1,284,324) (810,260) (2,094,584) - - - (2,094,584)
Deferred tax effects:
Available-for-sale fair value reserves (123,769) (1,429) (125,198) - - - (125,198)
Others (partial bonus restoration) 1,212,561 8,928 1,221,489 - - - 1,221,489
Transfer to Shareholders fund - (434) (434) - - - (434)
At 31 December 2010 41,826,552 4,799,226 46,625,778 (10,786) (46,609) (57,395) 46,568,383
77
Gross Reinsurance
With DPF Without DPF Total With DPF Without DPF Total Net
RM000 RM000 RM000 RM000 RM000 RM000 RM000
At 1 January 2009 31,756,682 3,419,029 35,175,711 (3,853) (41,815) (45,668) 35,130,043
Effects due to adoption of RBC:
Available-for-sale fair value reserves (net of
deferred tax 926,614 - 926,614 - - - 926,614
Fair value measurement of FVTPL 720,794 69,165 789,959 - - - 789,959
At 1 January 2009 (restated) 33,404,090 3,488,194 36,892,284 (3,853) (41,815) (45,668) 36,846,616
Premiums received (Note 18) 3,398,855 1,189,918 4,588,773 (54,065) (38,760) (92,825) 4,495,948
Liabilities paid for death, maturities, surrenders,
benets and claims (Note 23) (2,203,538) (513,591) (2,717,129) 28,622 38,998 67,620 (2,649,509)
Policy movement 1,706,850 61,671 1,768,521 - 611 611 1,769,132
Interest rate (783) (41,214) (41,997) - 951 951 (41,046)
Adjustments due to changes in assumptions:
Mortality/morbidity (2,431) (9,702) (12,133) - (9,420) (9,420) (21,553)
Interest rate 1,523,565 - 1,523,565 - - - 1,523,565
Expenses 176,804 (24,697) 152,107 - - - 152,107
Lapse 18,155 6,438 24,593 - 173 173 24,766
Others - 39,655 39,655 - - - 39,655
Claims benet experience variation 334,084 13,362 347,446 20,195 (7,614) 12,581 360,027
Net asset value attributable to unitholders - 293,851 293,851 - - - 293,851
Net creation of units - 380,511 380,511 - - - 380,511
Net cancellation of units - (101,921) (101,921) - - - (101,921)
Available-for-sale fair value reserves 1,895,650 41,874 1,937,524 - - - 1,937,524
Unallocated surplus (2,870,763) (812,046) (3,682,809) - - - (3,682,809)
Deferred tax effects:
Available-for-sale fair value reserves (151,955) (4,649) (156,604) - - - (156,604)
At 31 December 2009 37,228,583 4,007,654 41,236,237 (9,101) (56,876) (65,977) 41,170,260
78
Included in the unallocated surplus component of the Companys insurance contract liabilities is an amount of RM393,151,624 (2009:
RM382,359,781), being the accumulated surplus of the Non Par Fund of the Company less the estimated actuarial liabilities for the
Fund (collectively referred to as the Non Par unallocated surplus). In accordance with FRS 4 and the Framework for Preparation
and Presentation of Financial Statements (FRS Framework), the Non Par unallocated surplus does not meet the denition of a
liability, that is, a present obligation of the Company arising from past events, the settlement of which is expected to result in an
outow of economic benets as the Non Par unallocated surplus represents the residual interest in the assets of the Non Par Fund
after consideration of all liabilities. In addition, in accordance to FRS 139, the AFS reserves of the life insurance fund of the Company,
amounting to RM4,105,438,285 (2009: RM2,707,534,385), should be accounted for as equity of the Company.
In accordance with the requirements of Guidelines issued by BNM, the Company has continued to classify the Non Par unallocated
surplus and the AFS reserves of the life insurance fund as insurance contract liabilities. These are modications to the FRS which had
been approved by BNM under Section 90 of the Insurance Act 1996. Had the Company applied the requirements of the Standards
and the FRS Framework, the insurance contract liabilities of the Company would have been lower by RM4,498,589,909 (2009:
RM3,089,894,166); consequently, the retained prots and AFS reserves of the Company would have been higher by RM4,498,589,909
(2009: RM3,089,894,166).
12. AGENTS RETIREMENT BENEFITS
Life Fund 2010 2009
RM000 RM000
At beginning of year 466,220 438,618
Provision for the year 72,557 50,172
Utilised during the year (23,666) (22,570)
At end of year 515,111 466,220
Payable after 12 months 390,515 360,986
13. DEFERRED TAXATION
Shareholders
RM000 RM000 RM000 RM000
At 1 January 2009 544 186,271 (16,664) 170,151
Recognised in:
Prot or loss (Note 25) 1,524 (31,003) 24,591 (4,888)
Other comprehensive income 1,037 - - 1,037
Insurance contract liabilities - 156,604 - 156,604
At 31 December 2009 3,105 311,872 7,927 322,904
Effects due to adoption of
FRS 139 (11) (2,466) - (2,477)
At 31 December 2010 (restated) 3,094 309,406 7,927 320,427
Recognised in:
Prot or loss (Note 25) 914 60,824 15,977 77,715
Other comprehensive income 3,681 - - 3,681
Insurance contract liabilities - 125,198 - 125,198
At 31 December 2010 7,689 495,428 23,904 527,021
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred taxes relate to the same tax authority.
79
13. DEFERRED TAXATION (continued)
Shareholders
RM000 RM000 RM000 RM000
At 31 December 2009
Presented after appropriate offsetting as follows:
Deferred tax liabilities 3,105 316,738 7,927 327,770
Deferred tax assets - (4,866) - (4,866)
3,105 311,872 7,927 322,904

At 31 December 2010
Presented after appropriate offsetting as follows:
Deferred tax liabilities 7,689 502,604 23,904 534,197
Deferred tax assets - (7,176) - (7,176)
7,689 495,428 23,904 527,021
The components and movements of deferred tax liabilities and assets during the nancial year prior to offsetting are as follows:
Deferred Tax Liabilities
Accelerated
Fair Fair capital
value of value of allowance on Accretion of
investment investment property and discounts on
properties assets equipment investments Total
RM000 RM000 RM000 RM000 RM000
Shareholders Funds
At 1 January 2010 - 4,135 - (1,030) 3,105
Effects due to adoption of FRS 139 - (11) - - (11)
Recognised in other comprehensive income - 3,681 - - 3,681
Recognised in income statement - 401 - 513 914
At 31 December 2010 - 8,206 - (517) 7,689
At 1 January 2009 - 2,201 - (1,657) 544
Recognised in income statement - 897 - 627 1,524
At 31 December 2009 - 4,135 - (1,030) 3,105
Life Fund
At 1 January 2010 14,179 287,461 15,098 - 316,738
Effects due to adoption of FRS 139 - (2,466) - - (2,466)
Recognised in insurance contract liabilities - 125,198 - - 125,198
Recognised in income statement 607 63,771 (1,244) - 63,134
At 31 December 2010 14,786 473,964 13,854 - 502,604
At 1 January 2009 9,113 168,905 10,746 - 188,764
Recognised in income statement 5,066 (38,048) 4,352 - (28,630)
At 31 December 2009 14,179 287,461 15,098 - 316,738
80
13. DEFERRED TAXATION (continued)
Deferred Tax Liabilities (continued)
Accelerated
Fair Fair capital
value of value of allowance on Accretion of
investment investment property and discounts on
properties assets equipment investments Total
RM000 RM000 RM000 RM000 RM000
Unit-linked
At 1 January 2010 - 7,927 - - 7,927
Recognised in income statement - 15,977 - - 15,977
At 31 December 2010 - 23,904 - - 23,904
At 1 January 2009 - (16,664) - - (16,664)
Recognised in income statement - 24,591 - - 24,591
At 31 December 2009 - 7,927 - - 7,927
Deferred Tax Assets
Amortisation Provision for
Life Fund of premium on impairment of
investments investments Total
RM000 RM000 RM000
At 1 January 2010 - (4,866) (4,866)
Recognised in income statement - (2,310) (2,310)
At 31 December 2010 - (7,176) (7,176)
At 1 January 2009 (12,214) (6,765) (6,765)
Effects due to fair value movement on investment assets 12,214 4,272 4,272
Recognised in income statement - (2,373) (2,373)
At 31 December 2009 - (4,866) (4,866)
14. OTHER FINANCIAL LIABILITIES
Shareholders
RM000 RM000 RM000 RM000
At 31 December 2010
Deposits received from reinsurers - 885 - 885
Outstanding purchases of investment securities 499 87,561 5,605 93,665
499 88,446 5,605 94,550
At 31 December 2009
Deposits received from reinsurers - 1,037 - 1,037
Outstanding purchases of investment securities - 3,710 11,062 14,772
- 4,747 11,062 15,809
The carrying amounts disclosed above approximate fair value at the balance sheet date. All amounts are payable within one year.
81
15. INSURANCE PAYABLES
Life Fund Unit-linked Total
RM000 RM000 RM000
At 31 December 2010
Due to reinsurers 31,662 - 31,662
Due to agents and intermediaries 146,857 - 146,857
178,519 - 178,519
At 31 December 2009
Due to reinsurers 27,985 - 27,985
Due to agents and intermediaries 113,156 - 113,156
141,141 - 141,141
The carrying amounts disclosed above approximate fair value at the balance sheet date.
Policy benets bear interest at 5% (2009: 5%) per annum.
16. OTHER PAYABLES
Shareholders
RM000 RM000 RM000 RM000
At 31 December 2010
Accrued expenses 32 61,957 36 62,025
Deposits from tenants - 15,438 - 15,438
Dividends payable 132,316 - - 132,316
Premium suspense - 36,870 - 36,870
Advance premium - 128,455 - 128,455
Amount due to ultimate holding company 1,628 - - 1,628
Amount due to intermediate holding company 589 - - 589
Amount due to holding company 574 - - 574
Others - 50,192 18,682 68,874
Total payables 135,139 292,912 18,718 446,769
Shareholders
RM000 RM000 RM000 RM000
At 31 December 2009
Accrued expenses 16 52,437 32 52,485
Deposits from tenants - 15,757 - 15,757
Dividends payable 131,260 - - 131,260
Premium suspense - 38,211 - 38,211
Advance premium - 105,344 - 105,344
Amount due to ultimate holding company 2,448 - - 2,448
Amount due to intermediate holding company 176 - - 176
Amount due to holding company 3,510 - - 3,510
Others - 79,132 13,605 92,737
Total payables 137,410 290,881 13,637 441,928
The amounts due to the holding, intermediate holding and ultimate holding companies are unsecured, interest-free and have no xed
terms of repayment.
82
17. OPERATING REVENUE
Shareholders
Fund Life Fund Total
RM000 RM000 RM000
For the nancial year ended 31 December 2010
Gross premiums (Note 18) - 4,890,825 4,890,825
Investment income (Note 19) 28,330 1,749,791 1,778,121
28,330 6,640,616 6,668,946
31 December 2009
Gross premiums (Note 18) - 4,588,773 4,588,773
Investment income (Note 19) 21,439 1,618,835 1,640,274
21,439 6,207,608 6,229,047
18. NET EARNED PREMIUMS
Life Fund 2010 2009
RM000 RM000
(a) Gross Premiums
Insurance contract (Note 11) 4,890,825 4,588,773
(b) Premiums ceded
Insurance contract:
Life (102,990) (92,825)

Net Earned Premiums 4,787,835 4,495,948
19. INVESTMENT INCOME
Shareholders
RM000 RM000 RM000
Rental income from properties - 46,756 46,756
Financial assets at FVTPL
- held for trading purposes Interest income - 3 3
- designated upon initial recognition Interest income - 1,056,678 1,056,678
Financial assets at AFS
Interest income 25,480 - 25,480
Dividend income
- equity securities quoted in Malaysia 641 301,633 302,274
- equity securities quoted outside Malaysia - 39,506 39,506
- equity securities unquoted in Malaysia 20 10,222 10,242
LAR interest income - 249,721 249,721
Cash and cash equivalents interest income 2,189 45,272 47,461
28,330 1,749,791 1,778,121
83
19. INVESTMENT INCOME (continued)
Shareholders
RM000 RM000 RM000
Rental income from properties - 45,549 45,549
- held for trading purposes Interest income - 99 99
- designated upon initial recognition Interest income - 986,585 986,585
Financial assets at AFS
Interest income 19,081 - 19,081
Dividend income
- equity securities quoted in Malaysia 1,204 226,254 227,458
- equity securities quoted outside Malaysia - 25,195 25,195
- equity securities unquoted in Malaysia 28 13,945 13,973
LAR interest income - 263,268 263,268
Cash and cash equivalents interest income 1,126 57,940 59,066
21,439 1,618,835 1,640,274
Included in rental income from investment properties is contingent rent for the year amounting to RM569,846 (2009: RM589,120).
Contingent rental arrangements are computed based on sales or prot achieved by tenants.
20. REALISED GAINS AND LOSSES
Shareholders
RM000 RM000 RM000
Property and equipment
Realised gains - 11 11
AFS nancial assets
Realised gains:
Equity securities
- quoted in Malaysia 3,431 362,011 365,442
- quoted outside Malaysia - 15,943 15,943
Debt securities
- unquoted in Malaysia 1,766 - 1,766
Total realised gains for AFS nancial assets 5,197 377,954 383,151
FVTPL nancial assets
Realised gains:
Embedded securities
- quoted in Malaysia 2 4,282 4,284
Debt securities
- unquoted in Malaysia - 96,279 96,279
Total realised gains for FVTPL 2 100,561 100,563
5,199 478,526 483,725
84
20. REALISED GAINS AND LOSSES (continued)
Shareholders
RM000 RM000 RM000
31 December 2009
Property and equipment
Realised gains - 613 613
AFS nancial assets
Realised gains:
Equity securities
- quoted in Malaysia 4,395 235,923 240,318
- quoted outside Malaysia - 4,346 4,346
Debt securities
- unquoted in Malaysia 418 - 418
Total realised gains for AFS nancial assets 4,813 240,269 245,082
FVTPL nancial assets
Realised gains:
Embedded securities
- quoted in Malaysia - 27,760 27,760
Debt securities
- quoted outside Malaysia - 632 632
- unquoted in Malaysia - 160,823 160,823
Realised losses:
Debt securities
- unquoted in Malaysia - (1,057) (1,057)
Total realised gains for FVTPL - 188,158 188,158
4,813 429,040 433,853
85
21. FAIR VALUE GAINS AND LOSSES
Shareholders
RM000 RM000 RM000
Investment properties (Note 4) - 7,587 7,587
Financial investments - FVTPL (4) 810,989 810,985
(4) 818,576 818,572
31 December 2009
Investment properties (Note 4) - 35,280 35,280
Financial investments - FVTPL - (495,628) (495,628)
- (460,348) (460,348)
22. FEES AND COMMISSION INCOME
Life Fund 2010 2009
RM000 RM000
Policyholder administration and investment management services 22,591 15,264
Reinsurance commission income 21,484 26,538
Fees and commission income related to insurance contracts 44,075 41,802
23. NET BENEFITS AND CLAIMS
Life Fund 2010 2009
RM000 RM000
(a) Gross Benets and Claim Paid
Life Insurance contracts:
Death (240,325) (259,767)
Maturity (841,526) (723,477)
Surrender (571,498) (528,748)
Cash bonus (563,421) (501,365)
Others (788,503) (703,772)
(3,005,273) (2,717,129)

(b) Claim Ceded to Reinsurers
Life insurance contracts 59,610 67,620

(c) Gross Change in Contract Liabilities
Life insurance contracts (2,977,572) (1,643,146)

(d) Change in Contract Liabilities Ceded to Reinsurers
Life insurance contracts (9,678) 7,685
86
24. MANAGEMENT EXPENSES
Shareholders
Employee benets expense 24(a) - 140,730 140,730
Directors remuneration 24(b) - 618 618
Auditors remuneration:
- statutory audits 14 418 432
- other services - 87 87
Depreciation of property and equipment 3 - 51,566 51,566
Amortisation of prepaid land lease payments 5 - 146 146
Rental of properties - 11,117 11,117
Operating lease payment - 545 545
Others 16 107,992 108,008
30 313,219 313,249
(a) Employee Benet Expense
Wages and salaries - 117,616 117,616
Short term accumulating compensated absences - 248 248
Social security contributions - 804 804
Dened contribution plans - EPF - 13,816 13,816
Other employee benet expense - 8,246 8,246
- 140,730 140,730
(b) Directors Remuneration
The details of remuneration receivable
by Directors during the year are as follows:
Executive:
Salaries and other emoluments - 1,355 1,355
Bonus - 260 260
Estimated money value of benet-in-kind - 31 31
- 1,646 1,646
Non-executive:
Fees - 618 618
- 2,264 2,264
Represented by:
Directors fees - 618 618
Amount included in Employee Benet Expense - 1,646 1,646
87
24. MANAGEMENT EXPENSES (continued)
Shareholders
31 December 2009
Employee benets expense 24(a) - 125,565 125,565
Directors fees 24(b) - 685 685
Auditors remuneration:
- statutory audits 16 349 365
- other services - 284 284
Depreciation of property and equipment 3 - 49,720 49,720
Amortisation of prepaid land lease payments 5 - 144 144
Rental of properties - 8,009 8,009
Operating lease payment - 547 547
Others 657 104,869 105,526
673 290,172 290,845
(a) Employee Benet Expense
Wages and salaries - 97,392 97,392
Short term accumulating compensated absences - (52) (52)
Social security contributions - 785 785
Dened contribution plans - EPF - 19,648 19,648
Other employee benet expense - 7,792 7,792
- 125,565 125,565
(b) Directors Remuneration
The details of remuneration receivable
by Directors during the year are as follows:

Executive:
Salaries and other emoluments - 1,137 1,137
Bonus - 130 130
Estimated money value of benet-in-kind - 8 8
- 1,275 1,275
Non-executive:
Fees - 500 500
Other emoluments - 185 185
- 685 685
Total directors remuneration 1,960 1,960

Represented by:
Directors fees - 685 685
Amount included in Employee Benet Expense - 1,275 1,275
88
24. MANAGEMENT EXPENSES (continued)
(b) Directors Remuneration (continued)
The remuneration, including benets-in-kind, attributable to the Chief Executive Ofcer, who was appointed as a director of the
Company amounted to RM1,646,140 (2009: RM1,275,471).
The directors fees are subject to the recommendation of the Remuneration Committee to the Board of Directors for endorsement
and approval by shareholders at the Annual General Meeting.
The number of directors whose total remuneration received from the Company during the year that fall within the following
bands is analysed below:
Number of Directors
2010 2009
Executive directors
RM1,250,001 - RM1,300,000 - 1
RM1,300,001 - RM1,700,000 1 -
Non-Executive directors
Below RM50,000 2 1
RM50,001 - RM100,000 1 2
RM100,001 - RM150,000 2 2
RM150,001 - RM200,000 1 -
RM200,001 - RM350,000 - 1
25. INCOME TAX EXPENSE

Shareholders
RM000 RM000 RM000
For nancial year ended:
31 December 2010
Current income tax:
Malaysian income tax 134,763 170,292 305,055
Double taxation relief (16,092) - (16,092)
118,671 170,292 288,963
Deferred tax:
Relating to origination and reversal of temporary differences (Note 13) 914 60,824 61,738
Over provided in previous years:
Malaysian income tax (1,732) - (1,732)
117,853 231,116 348,969
89
25. INCOME TAX EXPENSE (continued)

Shareholders
RM000 RM000 RM000
31 December 2009
Current income tax:
Malaysian income tax 159,012 150,362 309,374
Tax on foreign dividend income - 135 135
Double taxation relief (24,883) (135) (25,018)
134,129 150,362 284,491
Deferred tax:
Relating to origination and reversal of temporary differences (Note 13) 1,524 (31,003) (29,479)
Under provided in previous years:
Malaysian income tax - 176 176
135,653 119,535 255,188
Domestic income tax for general business and shareholders fund is calculated at the Malaysian statutory tax rate of 25% of the
estimated assessable prot for the year.
The Malaysian tax charge on the life insurance business is based on the method prescribed under the Income Tax Act, 1967 for life
business. The statutory tax rate for the life insurance business is 8%.
Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In accordance with the Finance
Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or
distributed to its shareholders, and such dividends will be exempted from tax in the hands of the shareholders (single tier system).
However, there is a transitional period of six years, expiring on 31 December 2013, to allow companies to pay franked dividends to
their shareholders under limited circumstances. Companies also have an irrevocable option to disregard the Section 108 balance and
opt to pay dividends under the single tier system. The change in the tax legislation also provides for the Section 108 balance to be
locked-in as at 31 December 2007 in accordance with Section 39 of the Finance Act 2007.
The Company however, did not elect for the irrevocable option to disregard the Section 108 balance as at 31 December 2007.
A reconciliation of income tax expense applicable to prot before taxation at the statutory income tax rate to income tax expense at
the effective income tax rate of the Company is as follows:
Shareholders
RM000 RM000 RM000
Prot before taxation 544,458 231,116 775,574

Taxation at Malaysian statutory tax rate of 25% 136,115 - 136,115
Taxation at Malaysian statutory tax rate of 8% - 18,489 18,489
Income not subject to tax (2,179) (116,513) (118,692)
Expenses not deductible for tax purposes 8 329,140 329,148
Double tax set-off (16,091) - (16,091)
Tax expense for the year 117,853 231,116 348,969
90
Shareholders
RM000 RM000 RM000
31 December 2009
Prot before taxation 641,397 119,535 760,932

Taxation at Malaysian statutory tax rate of 25% 160,349 - 160,349
Taxation at Malaysian statutory tax rate of 8% - 9,563 9,563
Income not subject to tax (877) (187,488) (188,365)
Expenses not deductible for tax purposes 1,063 297,284 298,347
Under provision in prior years - 176 176
Double tax set-off (24,882) - (24,882)
Tax expense for the year 135,653 119,535 255,188
Previously, investment income and gains from disposal of investments from the Life Fund would be taxed twice, once at a tax rate of
8% in the Life Fund and again at a tax rate of 25% when the surplus from the Life Fund is transferred to the Shareholders Fund. In
the Budget 2008 which was enacted via a Gazette Order on 21 April 2008, effective from year of assessment 2008 onwards insurance
companies are permitted a set-off (Section 110B credits) from the total amount of tax imposed on the Shareholders Fund to
overcome the incidence of double taxation.
Section 110B credits are governed by a specic Inland Revenue Board (IRB) guideline issued on 5 November 2008 which details the
computation of the said credits available to the Shareholders Fund of an insurance company. Section 110B credits are applied before
dividend tax credits when computing net tax payable to the IRB.
2010 2009
RM000 RM000
Unit-linked
Tax expense for the year:
Malaysian income tax 7,944 (317)
Under provision in prior years - 14

Deferred tax:
Relating to origination and reversal of temporary differences (Note 13) 15,977 24,591
23,921 24,288
The Malaysian tax charge on the invesment-linked business is based on the method prescribed under the Income Tax Act, 1967 for
life business.
91
A reconciliation of income tax expense applicable to surplus before taxation at the statutory income tax rate to income tax expense at
the effective income tax rate of the Company is as follows:
2010 2009
RM000 RM000
Surplus before taxation 321,382 318,139

Taxation at Malaysian statutory tax rate of 8% 25,711 25,451
Income not subject to tax (1,793) (1,188)
Expenses not deductible for tax purposes 3 11
Under provision in prior years - 14
Tax expense for the year 23,921 24,288
26. EARNINGS PER SHARE
The basic earnings per share is calculated as follows:
2010 2009
RM000 RM000
Income - net prot for the year 426,605 505,744
Number of shares in issue 100,000 100,000
Basic earnings per share (sen) 427 506
27. DIVIDENDS
Dividends
Dividends in respect of Year Recognised in Year
2010 2009 2010 2009
RM000 RM000 RM000 RM000
Interim dividends paid during the year 144,500 - 144,500 -
Final dividends (proposed for approval at AGM) 282,000 505,500 505,500 -
426,500 505,500 650,000 -
Dividend per share (sen), net 426.50 505.50
At the forthcoming Annual General Meeting of the Company, a second and nal single tier dividend in respect of the nancial year
ended 31 December 2010 of RM2.82 (2009: RM5.06) per ordinary share on 100,000,005 ordinary shares, amounting to a dividend
payable of RM282,000,014 (2009: RM505,500,025) will be proposed for shareholders approval. The nancial statements for the
current nancial year do not reect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in
equity as an appropriation from retained earnings in the nancial year ending 31 December 2011.
92
28. CASH FLOWS

2010 2009
RM000 RM000
Prot before tax 775,574 760,932
Investment income (1,901,170) (1,720,095)
Realised gains recorded in prot and loss (559,675) (413,332)
Fair value (gains)/losses recorded in prot and loss (1,016,358) 153,685
Purchases of FVTPL nancial investments (11,552,702) (8,964,094)
Proceeds from sale/maturity of FVTPL nancial investments 9,237,822 5,919,298
Purchases of AFS nancial investments (2,695,410) (1,120,129)
Proceeds from sale/maturity of AFS nancial investments 822,921 1,119,990
Decrease in LAR 1,866,994 80,997
Non-cash items
Depreciation of property and equipment 51,566 49,720
Amortisation of prepaid land lease payments 146 144
Impairment losses on nancial investments 28,738 25,147
Provision for agents retirement benet 72,557 50,172
Write-off for depreciation of property and equipment 85 828
Realised foreign exchange loss/(gain) on disposal of investments 1,778 (647)
Unrealised derivative forward foreign exchange - (2,872)
Transfer from General Insurance fund to Insurance Contract Liabilities - (434)
Transfer from Insurance Contract Liabilities to Shareholders fund 434 -
Changes in working capital:
Decrease/(increase) in reinsurance assets 8,583 (20,308)
Increase in insurance receivables (20,881) (18,484)
(Increase)/decrease in other receivables (124,252) 27,250
Increase in insurance contract liabilities 4,014,101 2,587,740
Increase in other nancial liabilities 78,741 11,326
Increase/(decrease) in insurance payables 37,380 (7,729)
Increase in other payables 3,784 110,583
Cash used in operating activities (869,244) (1,370,312)
The Company classies the cash ows from the acquisition and disposal of nancial assets as operating cash ows, as the purchases
are funded from cash ows associated with the origination of insurance contracts, net of the cash ows for payments of benets and
claims incurred for insurance contracts, which are respectively treated under operating activities.
29. OPERATING LEASE ARRANGEMENTS
The Company (as lessor) has entered into operating lease agreements on its investment properties portfolio and certain self-occupied
properties. These leases have remaining lease term of between 1 and 5 years. All leases include a clause to enable upward revision of the
rental charge on an annual basis based on prevailing market conditions and certain contracts include contingent rental arrangements
computed based on sales achieved by tenants.
93
29. OPERATING LEASE ARRANGEMENTS (continued)
The future minimum lease payments/receivable under operating leases contracted for as at the balance sheet date but not recognised
as receivables, are as follows:
2010 2009
RM000 RM000
(a) The Company as lessee
Not later than 1 year 53 152
Later than 1 year and not later than 5 years 1,418 1,390
1,471 1,542
(b) The Company as lessor
Not later than 1 year 16,108 13,056
Later than 1 year and not later than 5 years 54,164 65,041
70,272 78,097
The lease payments and rental income including contingent rent recognised in prot or loss during the nancial year are described in
Note 24 and Note 19 respectively.
30. CAPITAL COMMITMENTS
2010 2009
RM000 RM000
Capital expenditure
Approved and contracted for:
Investment properties 5,289 4,827
Property and equipment 13,442 8,528
Approved but not contracted for:
Investment properties 95,569 95,569
114,300 108,924
31. RELATED PARTY DISCLOSURES
(a) In addition to the transactions detailed elsewhere in the nancial statements, the Company had the following
transactions and balances with related parties during the nancial year:
2010 2009
RM000 RM000
(i) Transactions with related parties during the year:
Property rentals received (note ii)
- OCBC Bank (Malaysia) Berhad 1,028 1,020
- Overseas Assurance Corporation (Malaysia) Berhad 1,547 1,497

Service charges paid (note iii)
- E2 Power Sdn Bhd 98 1,835
- Pacic Mutual Fund Bhd 350 -

94
31. RELATED PARTY DISCLOSURES (continued)
2010 2009
RM000 RM000
(a) (i) Transactions with related parties during the year: (continued)
Service charges received

Premium paid (note i)

Premium received (note i)
- Overseas Assurance Corporation (Malaysia) Berhad 155 130
- E2 Power Sdn Bhd 130 -
- OCBC Bank (Malaysia) Berhad 365 -

Commission received
- Overseas Assurance Corporation (Malaysia) Berhad 353 332

Commission fees paid
- OCBC Securities Private Limited 857 514
- PAC Lease Sdn Bhd 42 13
Disposal of unit trust (note vi)
- Pacic Mutual Fund Bhd 280 18,598
Interest income (note iv)
Dividend income from preference shares (note v)

Bank charges
- OCBC Bank (Malaysia) Berhad 690 515

Employee Share Option Scheme paid
- Overseas Chinese Banking Corporation Ltd. 1,874 816

Charges for group services (note vii)
- Great Eastern Life Assurance Company Limited 16,455 -

(ii) Balances with related parties at year end:

Investment in preference shares (note v)

Investment in redeemable subordinated bonds

Cash and bank balances
95
2010 2009
RM000 RM000
(a) (ii) Balances with related parties at year end: (continued)
Fixed deposits and repurchase agreements
Structured deposits
Investment in unit trust (note viii)
- Pacic Mutual Fund Bhd 20,000 -
- Lion Global Investors Limited (note ix) 989 -
Amount due from related companies:
- Great Eastern General Insurance Sdn Bhd 18 15
- Overseas Assurance Co (Malaysia) Berhad 358 263
- Great Eastern Takaful Sdn Bhd 2,299 -
Amount due to ultimate holding company:
- Overseas Chinese Banking Corporation Ltd 1,628 2,448

Amount due to intermediate holding company:
- The Great Eastern Life Co Ltd 429 176
- Great Eastern Holdings Co Ltd 160 -

Amount due to holding company:
- Great Eastern Capital (M) Berhad 574 3,510
Related companies are companies within the OCBC group:
(i) The sale and purchase of insurance policies to related companies are made according to normal market prices and at terms and
conditions no more favourable than those to other customers and employees.
(ii) Rental of property to related parties are made according to normal market prices, terms and conditions.
(iii) Payment of service charges to related parties are made according to normal market prices.
(iv) The interest income arose mainly from investment in xed deposits and repurchase agreements which are made according to
prevailing market rates, terms and conditions.
(v) The dividend income arose from investment in OCBC Bank (Malaysia) Bhd preference shares which are made according to
arms length terms and conditions. The investment in OCBC (Malaysia) Bhd preference shares amounting to RM100 million was
approved by the Board.
(vi) The disposal of unit trust amounting to RM0.28 million to Pacic Mutual Fund Berhad was made at arms length and on normal
commercial terms.
(vii) With effect from June 2010, Great Eastern Holdings Limited had allocated its Group function cost to all its subsidiaries including
GELM based on allocation rates approved by Group function heads.
(viii) The Company has increased the outsourcing of additional RM20 million with Pacic Mas Asset Management Sdn Bhd. The
outsourcing agreement was made at arms length and approved by the Board.
(xi) The Company has launch a new Investment-linked fund i.e. Lion Asia Pacic fund with Lion Global Investors Limited.
96
(b) Compensation of key management personnel
The remuneration of directors and other members of key management during the year was as follows:
2010 2009
RM000 RM000
Short-term employee benets 3,538 2,208
Post-employments benets:
Dened contribution plan, EPF 131 464
3,669 2,672
Share-based payment (in units) 43,000 36,530
Included in the total key management personnel are:
Directors remuneration (Note 24(b)) 2,264 1,960
32. RISK MANAGEMENT FRAMEWORK
Governance framework
Managing risk is an integral part of the Companys core business. As stated in the Enterprise Risk Management (ERM) Framework,
the Company shall not shy away from taking risk, but shall:
- Always operate within the risk appetite set by the Board, and
- Ensure commensurate reward for any risk taken.
The Risk Management Department spearheads the development and implementation of the ERM Framework for the Company.
The Board Risk Committee (BRC), constituted in 2003, provides the oversight on the risk management initiatives. Detailed risk
management activities are undertaken by the following Management Committees comprising the Chief Executive Ofcer and key
Senior Management Executives:-
Senior Management Team (SMT)
Asset-Liability Committee (ALC)
Product Development Committee ( PDC)
The SMT is responsible for providing leadership, direction and oversight with regards to all matters of the Company. The SMT is also
responsible for ensuring compliance and alignment with Group Governance and Oversight Framework, ie. Group standards and
guidelines.
The ALC is responsible for assisting the SMT in balance sheet management. Specically, the ALC reviews and formulates technical
frameworks, policies and methodology relating to balance sheet management. The ALC is also responsible for ensuring compliance
and alignment with Group Governance and Oversight Framework, ie. Group standards and guidelines.
The PDC oversees the product development and launch process. In addition, the PDC regularly reviews and monitors the performance
of new and existing products.
Regulatory framework
Insurers have to comply with the Malaysian Insurance Act and Regulations, including guidelines on investment limits. The responsibility
for the formulation, establishment and approval of the Companys investment policies rests with the Board of Directors (Board). The
Board exercises oversight on the investments to safeguard the interests of the policyholders and shareholders.
97
32. RISK MANAGEMENT FRAMEWORK (continued)
Capital Management framework
The Companys capital management policy is to create shareholder value, deliver sustainable returns to shareholders, maintain a
strong capital position with optimum buffer to meet policyholders obligations and regulatory requirements and make strategic
investments for business growth.
The Risk-based Capital Framework for the insurance industry came into effect on 1 January 2009. Under this new framework, the
insurer has to maintain a capital adequacy level that is commensurate with its risk proles. The minimum capital requirement under
the Risk-based Capital Framework regulated by Bank Negara Malaysia (BNM) is 130%.
The principal activities of the Company are the provision of nancial services coupled with insurance protection against risks such as
mortality and morbidity (health, critical illness, disability and personal accident).
The Companys underwritting strategy is designed to ensure that these risks are well diversied in terms of type of risk and level of
insured benets. This is largely achieved through diversication across industry sectors and geography, the use of medical screening
in order to ensure that pricing takes account of current health conditions and family medical history, regular review of actual claims
experience and product pricing, as well as detailed claims handling procedures. Underwritting limits are also set in place to enforce
appropriate risk selection criteria. For examples, the Company has the right not to renew individual policies, it can impose deductibles
and it has the right to reject the payment of fraudulent claims.
The following sections provide details regarding the Companys exposure to risks and the objectives, policies and processes for the
management of these risks.
Risks inherent in the insurance business include, but are not limited to the following:-
Insurance Risk
Insurance risk comprises of both actuarial and underwriting risks resulting from the pricing and acceptance of insurance contracts.
The risks arise when actual claims experience is different from the assumptions used in setting the prices for products and establishing
the technical provisions and liabilities for claims. Sources of risk include policy lapses and policy claims such as mortality, morbidity
and expenses.
The Company utilizes reinsurance to manage the mortality and morbidity risks. The Companys reinsurance management strategy and
policy are reviewed annually by the ALC and BRC, and approved by the Board. Reinsurance structures are set based on the type of
risk. Catastrophe reinsurance is procured to limit catastrophic losses.
Only reinsurers meeting a minimum credit rating of S&P A- are considered when deciding on which reinsurers to reinsure the
Companys risk. The Company limits its risk to any one reinsurer by ceding different products to different reinsurers or to a panel of
reinsurers.
The SMT reviews the actual experience of mortality, morbidity, lapses and surrenders, as well as expenses to ensure that appropriate
policies, guidelines and limits put in place to manage these risks remain adequate and appropriate.
A substantial portion of the Companys life assurance funds is participating in nature. In the event of volatile investment climate and/
or unusual claims experience, the insurer has the option of revising the bonuses and dividends payable to policyholders.
For non-participating funds, the risk is that the guaranteed policy benets must be met even when investment markets perform
poorly, or claims experience is higher than expected.
For investment-linked funds, the risk exposure for the Company is limited only to the underwriting aspect as all investment risks are
borne by the policyholder.
Stress Testing (ST) is performed twice a year. The purpose of the ST is to test the solvency of the life fund under the various
scenarios according to regulatory guidelines, simulating drastic changes in major parameters such as new business volume, investment
environment, mortality/morbidity patterns and lapse rates.
98
Insurance Risk (continued)
Table 32(A): The Table below shows the concentration of life insurance contract liabilities with DPF by type of contract as at the
balance sheet date, net of reinsurance:
Net of reinsurance
Life Fund With DPF Without DPF Total
RM000 RM000 RM000
31 December 2010
Whole Life 20,560,198 2,548,074 23,108,272
Endowment 6,375,758 1,297,489 7,673,247
Term (4,069) 203,931 199,862
Accident and Health 10,160 124,012 134,172
Annuity - 1,498 1,498
Others 571,171 (12,962) 558,209
Total 27,513,218 4,162,042 31,675,260

31 December 2009
Whole Life 17,773,379 1,901,225 19,674,604
Endowment 6,349,233 1,188,022 7,537,255
Term (4,724) 193,020 188,296
Accident and Health 10,271 105,723 115,994
Annuity - 1,423 1,423
Others 355,456 (29,337) 326,119
Total 24,483,615 3,360,076 27,843,691
The sensitivity analysis below shows the impact of change in key parameters on the value of policy liabilities, and hence on the prot
and loss statement and Shareholders Equity:
Sensitivity analysis produced are based on parameters set out as follows:
Change in Assumptions
(a) Scenario 1 Mortality & Major Illness + 25% for all future years
(b) Scenario 2 Mortality & Major Illness - 25% for all future years
(c) Scenario 3 Health & Disability + 25% for all future years
(d) Scenario 4 Health & Disability - 25% for all future years
(e) Scenario 5 Lapse & Surrender rates + 25% for all future years
(f) Scenario 6 Lapse & Surrender rates - 25% for all future years
(g) Scenario 7 - Expenses + 30% for all future years
99
Insurance Risk (continued)
Table 32(B): (Loss)/Prot After Tax and Shareholders Equity sensitivity:
Impact on one years prot/(loss) after tax and Shareholders Equity
RM000 Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7
As at 31 December 2010
Gross impact (122,142) 132,691 (28,228) 23,843 (8,698) 11,181 (14,809)
Reinsurance ceded - - - - - - -
Net impact (122,142) 132,691 (28,228) 23,843 (8,698) 11,181 (14,809)
Gross impact (123,168) 135,135 (22,428) 22,608 (9,114) 11,617 (14,765)
Reinsurance ceded - - - - - - -
Net impact (123,168) 135,135 (22,428) 22,608 (9,114) 11,617 (14,765)
The above table demonstrates the sensitivity of the Companys prot and loss after tax to a reasonably possible change in actuarial
valuation assumptions on an individual basis with all other variables held constant. The effect of sensitivity analysis on reinsurance
ceded is not material. The method used and signicant assumptions made for deriving sensitivity information above did not change
from previous year.
Market And Credit Risk
Market risk arises when the market value of assets and liabilities uctuates according to market conditions. Changes in interest rates,
foreign exchange rates, equity prices and alternative investment prices can impact present and future investment earnings of the
insurance operations as well as shareholders equity.
The Company is exposed to market risk in the Shareholders Fund as well as in the mismatch risk between the assets and liabilities of
the Insurance Funds. The ALC actively manages market risk through setting and monitoring of the investment policy, asset allocation,
portfolio construction and risk measurement. Investment limits monitoring is in place at various levels to ensure that all investment
activities are aligned with the Companys risk management principles and philosophies. Compliance with established nancial risk
limits forms an integral part of the risk governance and nancial reporting framework. Management of market risk resulting from
changes in interest rates and currency exchange rates, volatility in equity price, as well as other risks like credit and liquidity risks are
briey described as follows:-
a) Interest rate risk (including asset liability mismatch)
The Company is exposed to interest rate risk through (i) investments in xed income instruments in both the Shareholders Fund
and the Insurance Funds and (ii) policy liabilities in the Insurance Funds. Since the Shareholders Fund has exposure to investments
in xed income instruments but no exposure to insurance policies liabilities, it will incur an economic loss when interest rates rise.
Given the long duration of policy liabilities and the uncertainty of cash ows for the Insurance Funds, it is not possible to hold
assets that will perfectly match the policy liabilities. This results in a net interest rate risk or asset liability mismatch risk, which is
managed and monitored by the ALC. On the other hand, the Insurance Funds is likely to incur economic loss when interest rates
drop since the duration of policyholders liabilities are generally longer than the duration of the xed income assets.
Under the regulations governed by Bank Negara Malaysia, the liability cash ows of all durations are discounted using weighted
interest rates that reect both past and current yield levels. The effect of changes in current interest rates on the value of
liability reserves is therefore, dampened compared to the corresponding impact on xed income asset values. As a result, non-
participating funds could have negative earnings impact when actual interest rates rise.
100
Market And Credit Risk (continued)
b) Foreign currency risk
Investments denominated in foreign currencies are limited to 10% with no country limit, subject to the foreign investments being
in jurisdictions with sovereign ratings at least equivalent to that of Malaysia, as prescribed by the regulator. Most of the foreign
currency risk comes from our Singapore core holdings, which are long-term in nature with good dividends on purchase cost. The
percentage exposure is small. (Refer to Table 32(C))
c) Equity price risk
Exposure to equity price risk exists in both assets and liabilities. Asset exposure exists through direct equity investment, where the
Company through its investments in the Shareholders Fund and Insurance Funds, bears all or most of the volatility in returns and
investment performance risk.
Equity price risk also exists in investment linked products where the revenues of the insurance operations are linked to the value of
the underlying equity funds since this has an impact on the level of fees earned. A robust monitoring process is in place to manage
equity risk by activating appropriate risk transfer strategies to limit the downside risk at certain predetermined levels. Limits are
set for single security holdings as a percentage of equity holdings.
d) Credit spread risk
Exposure to credit spread risk exists in the Companys investments in bonds. Credit spread is the difference between the corporate
yields against risk-free rate of the same tenure. When spreads widen, it generally implies that the market is factoring more risk of
default on lower grade bonds. A widening in credit spreads will result in a fall in the values of the Companys bond portfolio.
e) Alternative investment risk
The Company is exposed to alternative investment risk through the investments in direct real estate that it owns through real
estate and infrastructure. Due to the special nature of this risk, every property deal is reviewed by the BRC regardless of its
value, but subject to the approval by the Board. The ALC assists in deliberating matters relating to property, including real estate
guidelines, risk management, performance, expenditure, operations and facilities management.
f) Commodity risk
The Company does not have any direct exposure to commodity risk.
g) Cash ow and liquidity risk
Cash ow and liquidity risk arises when a company is unable to meet its obligations at reasonable cost when required to do so.
This typically happens when the investments in the portfolio are illiquid. Demands for funds can usually be met through ongoing
normal operations, premiums received, sale of assets or borrowings. Unexpected demands for liquidity may be triggered by
negative publicity, deterioration of the economy, reports of problems in other companies in the same or similar lines of business,
unanticipated policy claims, or other unexpected cash demands from policyholders.
Expected liquidity demands are managed through a combination of treasury, investment and asset-liability management practices,
which are monitored on an ongoing basis. Actual and projected cash inows and outows are monitored and a reasonable
amount of assets are kept in liquid instruments at all times.
The projected cash ows from the in-force insurance policy contract liabilities consist of renewal premiums, commissions, claims,
maturities and surrenders. Renewal premiums, commissions, claims and maturities are generally stable and predictable. Surrenders
can be more uncertain although it has been quite stable over the past several years.
Unexpected liquidity demands are managed through a combination of product design, diversication limits, investment strategies
and systematic monitoring. The existence of surrender penalty in insurance contracts also protects the Company from losses
due to unexpected surrender trends as well as reduces the sensitivity of surrenders to changes in interest rates. (Refer to Table
32(D1)&(D2))
101
h) Credit risk
The Company is exposed to credit risk through (i) investment in bonds, (ii) corporate lending activities and (iii) exposure to
counterpartys credit in reinsurance contracts and money market placements. For all three types of exposures, nancial loss may
materialize as a result of credit default by the borrower or counterparty. For investment in bonds, nancial loss may materialize as
a result of the widening credit spread or downgrade of credit rating.
The task of evaluating and monitoring credit risk is undertaken by the Credit Risk Committee (CRC), which in turn reports to
the ALC. The Company has internal limits by issuer or counterparty and by credit ratings. These limits are actively monitored to
manage the credit and concentration risk. These limits are reviewed on a regular basis. The creditworthiness of reinsurers and
banks is assessed on an annual basis by reviewing their nancial strength through published credit ratings and other publicly
available nancial information. (Refer to Table 32(E1)&(E2))
Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by following policy
guidelines in respect of counterparties limits that are set each year.
Credit risk in respect of customer balances incurred on non-payment of premiums or contributions will only persist during the
grace period specied in the policy document or trust deed until expiry, when the policy is either paid up or terminated.
The Company issues unit-linked investment policies. In the unit-linked business, the policyholder bears the investment risk on the
assets held in the unit-linked funds as the policy benets are directly linked to the value of the assets in the fund. Therefore, the
Company has no material credit risk on unit-linked nancial assets.
The loans in the Companys portfolio are generally secured by collateral with maximum loan to value ratio of 70%
predominantly.
The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are
implemented regarding the acceptability of types of collateral and the valuation parameters. Credit risk is also mitigated by
entering into collateral agreements. Management monitors the market value of the collateral, request additional collateral when
needed and performs an impairment valuation, whenever applicable. The fair value of collateral, held by the company as lender,
for which it is entitled to sell or pledge in the event of default is as follows:
Carrying
Amount of Fair Value of
RM000 Type of Collateral Loans Collateral
At 31 December 2010
Secured loans Properties 586,955 2,687,288
Bankers guarantees 42,500 42,500
Others 2,762 2,762
Policy loans Cash value of policies 3,345,416 6,504,885
3,977,633 9,237,435
At 31 December 2009
Secured loans Properties 830,477 2,835,031
Bankers guarantees 56,500 56,500
Others 2,089 2,089
Policy loans Cash value of policies 3,271,971 6,316,406
4,161,037 9,210,026
102
h) Credit risk (continued)
Transactions are conducted under terms and conditions that are usual and customary to standard securities borrowing and
lending activities.
i) Concentration risk
An important element of managing both market and credit risk is to actively manage concentration to specic issuers,
counterparties, industry sectors, countries and currencies. Both internal and regulatory limits are put in place and monitored to
manage these risk. These limits are reviewed on a regular basis by the ALC.
j) Sensitivity analysis on nancial risks
The analysis below is performed for reasonably possible movements in key variables with all other variables being held constant.
The correlation of variables will have a signicant effect in determining the ultimate fair value and/or amortised cost of nancial
assets, but to demonstrate the impact due to changes in variables, these variables have to be changed on an individual basis. It
should be noted that the movements in these variables are non-linear.
The impact on net prot after tax represents the effect caused by changes in fair value of nancial assets whose fair values are
recorded in the prot or loss, and changes in valuation of insurance contract liabilities. The impact on equity represents the impact
on net prot after tax and the effect on changes in fair value of nancial assets held in Shareholders Funds.
Market risk sensitivity analysis:
RM (millions) Impact on Impact on Impact on Impact on
Prot After Tax Equity Prot After Tax Equity
Change in variables
a) Equity
+/-20% 0.0 +/-12.4 0.0 +/-30.0
b) Alternative Investment
+/-10% +/-3.9 +/-3.9 +/-9.0 +/-9.0
c) Foreign Currency
+/-5% +/-0.2 +/-0.2 - -
d) Interest Rate
Yield curve +100 bps -35.2 -43.7 -84.8 -107.4
Yield curve -100 bps 33.7 40.4 81.4 100.7

e) Credit Spread
Spread +/-100 bps -/+27.9 -/+32.6 -/+56.6 -/+64.5
103
Operational And Compliance Risk
Operational risk is an event or action that may potentially impact partly or completely the achievement of the Companys objectives
resulting from inadequate or failed internal processes and systems, human factors or external events.
Compliance risk is any event or action that may potentially impact partly or completely the achievement of the Companys objectives,
via legal or regulatory sanctions or nancial losses, as a result of its failure to comply with applicable laws, regulations, rules and
standards, which are dened as:
- Laws, regulations and rules governing insurance business and nancial activities undertaken by the Company
- Codes of practice promoted by industry associations
- Internal standards and guidelines
The day-to-day management of operational and compliance risk is effected through the maintenance ofa comprehensive internal
controls, supported by an infrastructure of systems and procedures to monitor processes and transactions. The SMT reviews and
monitors operational and compliance issues at its monthly meetings. The Internal Audit team reviews the systems of internal control
to assess their effectiveness and continued relevance, and report at least quarterly to the Audit Committee.
Table 32(C): The table below summarises the assets and liabilities position by currency as at the reporting date, which are mainly in
Ringgit Malaysia, Singapore Dollars and United States Dollars. Other currencies mainly include exposure to Australian Dollars, Great
Britain Pounds and Hong Kong Dollars.
RM SGD USD Others Total
RM000 RM000 RM000 RM000 RM000
At 31 December 2010
Assets
Investments
Malaysian government securities 8,150,412 - - - 8,150,412
Debt securities 22,162,921 - - - 22,162,921
Equity securities 10,542,717 1,572,014 2,779 161,962 12,279,472
Embedded derivatives 16,490 - - - 16,490
Unit and property trust funds 244,133 89,845 - - 333,978
Loans 3,977,633 - - - 3,977,633
Deposits with nancial institutions 457,552 - - - 457,552
Reinsurance assets 57,395 - - - 57,395
Insurance receivables 287,902 - - - 287,902
Other receivables 483,588 - 573 1,677 485,838
Cash and bank balances 20,356 5,097 6 2,210 27,669
Liabilities
Insurance contract liabilities 46,625,778 - - - 46,625,778
Agents retirement benet 515,111 - - - 515,111
Other nancial liabilities 94,550 - - - 94,550
Insurance payables 178,519 - - - 178,519
Other payables 446,769 - - - 446,769
104
RM SGD USD Others Total
RM000 RM000 RM000 RM000 RM000
At 31 December 2009
Assets
Investments
Malaysian government securities 7,685,431 - - - 7,685,431
Debt securities 19,130,310 - - - 19,130,310
Equity securities 7,753,511 973,683 2,518 7,814 8,737,526
Embedded derivatives 4,455 - - - 4,455
Unit and property trust funds 38,739 80,668 - - 119,407
Loans 4,161,037 - - - 4,161,037
Deposits with nancial institutions 2,141,140 - - - 2,141,140
Derivatives 2,872 - - - 2,872
Reinsurance assets 65,977 - - - 65,977
Insurance receivables 267,022 - - - 267,022
Other receivables 340,651 - 9 90 340,750
Cash and bank balances 12,550 244 68,687 638 82,119
Liabilities
Insurance contract liabilities 41,236,237 - - - 41,236,237
Agents retirement benet 466,220 - - - 466,220
Other nancial liabilities 15,338 - 174 297 15,809
Insurance payables 141,141 - - - 141,141
Other payables 441,928 - - - 441,928
Table 32(D1): The following table shows the maturity prole of the Companys nancial liabilities and the expected recovery or
settlement of nancial assets based on contractual undiscounted cash ow basis.
For insurance contract liabilities and reinsurance assets, maturity proles are determined based on the estimated timing of net cash
outows from the recognised insurance liabilities.
Unit-linked liabilities are repayable or transferable on demand and are included in the up to a year column.
Carrying Up to a 1 - 5 > 5 No maturity
value Year* Years Years date Total
RM000 RM000 RM000 RM000 RM000 RM000
31 December 2010
Financial investments:
LAR 4,435,185 493,205 627,232 148,014 3,345,416 4,613,867
AFS 11,470,827 61,335 181,568 353,295 10,999,715 11,595,913
FVTPL 31,472,446 5,094,892 10,460,619 25,850,393 1,628,348 43,034,252
Reinsurance assets 57,395 4,779 36,670 15,946 - 57,395
Insurance receivables 287,902 285,802 2,100 - - 287,902
Other receivables 485,838 480,449 2,469 2,920 - 485,838
Cash and bank balances 27,669 27,669 - - - 27,669
Total assets 48,237,262 6,448,131 11,310,658 26,370,568 15,973,479 60,102,836

105
Table 32(D1) (continued)
RM000 RM000 RM000 RM000 RM000 RM000
31 December 2010
Insurance contract liabilities:
With DPF 41,826,552 3,307,727 1,868,298 25,652,573 10,997,954 41,826,552
Without DPF 4,799,226 3,228,001 146,650 987,614 436,961 4,799,226
Agents retirement benet 515,111 124,596 106,301 284,214 - 515,111
Other nancial liabilities 94,550 93,665 885 - - 94,550
Insurance payables 178,519 146,857 31,662 - - 178,519
Other payables 446,769 431,331 15,438 - - 446,769
Total liabilities 47,860,727 7,332,177 2,169,234 26,924,401 11,434,915 47,860,727
* Expected utilisation or settlement within 12 months from the Balance Sheet date.
RM000 RM000 RM000 RM000 RM000 RM000
31 December 2009
LAR 6,302,177 2,422,004 608,470 234,559 3,271,971 6,537,004
AFS 8,358,918 77,111 264,185 369,251 7,805,226 8,515,773
FVTPL 27,321,083 2,736,796 10,930,494 24,710,025 1,058,334 39,435,649
Reinsurance assets 65,977 6,182 39,569 20,226 - 65,977
Insurance receivables 267,022 262,327 4,695 - - 267,022
Other receivables 340,750 335,982 1,848 2,920 - 340,750
Cash and bank balances 82,119 82,119 - - - 82,119
Total assets 42,738,046 5,922,521 11,849,261 25,336,981 12,135,531 55,244,294
With DPF 37,228,583 3,054,976 1,118,756 23,229,847 9,825,004 37,228,583
Without DPF 4,007,654 2,537,596 104,846 945,628 419,584 4,007,654
Agents retirement benet 466,220 105,234 105,733 255,253 - 466,220
Other nancial liabilities 15,809 14,772 1,037 - - 15,809
Insurance payables 141,141 113,154 27,987 - - 141,141
Other payables 441,928 426,171 15,757 - - 441,928
Total liabilities 42,301,335 6,251,903 1,374,116 24,430,728 10,244,588 42,301,335
106
Table 32(D2): The following table shows the current/non current classication of assets and liabilities.
Current* Noncurrent Unitlinked Total
RM000 RM000 RM000 RM000
31 December 2010
Property and equipment - 530,958 - 530,958
Investment properties - 510,585 - 510,585
LAR 3,605,945 632,140 197,100 4,435,185
AFS 42,968 11,427,859 - 11,470,827
FVTPL 3,964,216 25,270,105 2,238,125 31,472,446
Reinsurance assets 4,779 52,616 - 57,395
Insurance receivables 285,802 2,100 - 287,902
Other receivables 459,016 5,389 21,433 485,838
Prepaid lease payments - 18,043 - 18,043
Cash and bank balances 26,698 - 971 27,669
Total assets 8,389,424 38,449,795 2,457,629 49,296,848

With DPF 3,307,727 38,518,825 - 41,826,552
Without DPF 814,405 1,571,225 2,413,596 4,799,226
Agents retirement benet 124,596 390,515 - 515,111
Other nancial liabilities 88,060 885 5,605 94,550
Insurance payables 146,857 31,662 - 178,519
Other payables 412,613 15,438 18,718 446,769
Total liabilities 4,894,258 40,528,550 2,437,919 47,860,727
107
Table 32(D2) (continued)
Current* Noncurrent Unitlinked Total
RM000 RM000 RM000 RM000
31 December 2009
Property and equipment - 550,823 - 550,823
Investment properties - 502,485 - 502,485
LAR 5,420,175 661,943 220,059 6,302,177
AFS 56,392 8,302,526 - 8,358,918
FVTPL 1,669,084 24,074,038 1,577,961 27,321,083
Reinsurance assets 6,182 59,795 - 65,977
Insurance receivables 262,327 4,695 - 267,022
Other receivables 330,867 4,768 5,115 340,750
Prepaid lease payments - 18,189 - 18,189
Cash and bank balances 80,340 - 1,779 82,119
Total assets 7,825,367 34,179,262 1,804,914 43,809,543
With DPF 3,054,976 34,173,607 - 37,228,583
Without DPF 759,284 1,470,058 1,778,312 4,007,654
Agents retirement benet 105,234 360,986 - 466,220
Other nancial liabilities 3,710 1,037 11,062 15,809
Insurance payables 113,154 27,987 - 141,141
Other payables 412,534 15,757 13,637 441,928
4,448,892 36,049,432 1,803,011 42,301,335
108
Table 32(E1): The table below shows the maximum exposure to credit risk for the components of the Balance Sheet. The maximum
exposure is shown gross, before the effect of mitigation through the use of master netting or collateral agreements and use of credit
derivatives. For derivatives, the fair value shown on the Balance Sheet represents the current risk exposure but not the maximum risk
exposure that would arise in the future as a result of the change in value.
Shareholders
31 December 2010
LAR 6(a)
Fixed and call deposits 650 259,802 197,100 457,552
Policy loans - 3,345,416 - 3,345,416
Mortgage loans - 586,955 - 586,955
Secured loans - 45,248 - 45,248
Unsecured loans - 14 - 14
AFS nancial investments 6(b)
Equity securities 21,306 10,709,553 - 10,730,859
Malaysian government securities 99,640 - - 99,640
Debt securities 371,471 - - 371,471
Unit and property trust fund - 268,857 - 268,857
Financial investments at FVTPL 6(c)
Equity securities - - 1,548,613 1,548,613
Embedded derivatives 50 6,830 9,610 16,490
Malaysian government securities - 8,007,389 43,383 8,050,772
Debt securities - 21,220,052 571,398 21,791,450
Unit and property trust fund - - 65,121 65,121
Reinsurance assets 7 - 57,395 - 57,395
Insurance receivables 8 - 287,902 - 287,902
Other receivables 9 7,804 456,601 21,433 485,838
Cash and bank balances 58 26,640 971 27,669
500,979 45,278,654 2,457,629 48,237,262
109
Table 32(E1) (continued)
Shareholders
31 December 2009
LAR 6(a)
Fixed and call deposits 49,550 1,871,531 220,059 2,141,140
Policy loans - 3,271,971 - 3,271,971
Mortgage loans - 830,477 - 830,477
Secured loans - 58,570 - 58,570
Unsecured loans - 19 - 19
AFS nancial investments 6(b)
Equity securities 24,602 7,685,600 - 7,710,202
Malaysian government securities 176,726 - - 176,726
Debt securities 376,966 - - 376,966
Unit and property trust fund - 95,024 - 95,024
Financial investments at FVTPL 6(c)
Equity securities - - 1,027,324 1,027,324
Embedded derivatives - 3,323 1,132 4,455
Malaysian government securities - 7,441,239 67,466 7,508,705
Debt securities - 18,295,688 457,656 18,753,344
Unit and property trust fund - - 24,383 24,383
Derivatives - 2,872 - 2,872
Reinsurance assets 7 - 65,977 - 65,977
Insurance receivables 8 - 267,022 - 267,022
Other receivables 9 5,620 330,015 5,115 340,750
Cash and bank balances 147 80,193 1,779 82,119
633,611 40,299,521 1,804,914 42,738,046
110
Table 32(E2): The table below provides information regarding the credit risk exposure of the Company by classifying assets according
to the Companys credit ratings of counterparties.
Neither past-due nor impaired
Non- Not subject
Investment grade* Investment grade* to
(BBB to AAA) (C to BB) Not Rated Unit-linked credit risk Past-due** Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000
31 December 2010
LAR
Fixed and call deposits 260,452 - - 197,100 - - 457,552
Policy loans - - 3,345,416 - - - 3,345,416
Mortgage loans - - 586,955 - - - 586,955
Secured loans 35,500 - 2,748 - - 7,000 45,248
Unsecured loans - - 14 - - - 14
AFS nancial investments
Equity securities - - - - 10,730,859 - 10,730,859
Malaysian government
securities - - - - 99,640 - 99,640
Debt securities 237,679 - 10,026 - 123,766 - 371,471
Unit and property trust fund - - - - 268,857 - 268,857
Financial investments at FVTPL
Equity securities - - - 1,548,613 - - 1,548,613
Embedded derivatives - - - 9,610 6,880 - 16,490
securities - - - 43,383 8,007,389 - 8,050,772
Debt securities 12,461,357 - 269,217 571,398 8,489,478 - 21,791,450
Unit and property trust fund - - - 65,121 - - 65,121
Reinsurance assets 56,215 - 1,180 - - - 57,395
Insurance receivables 2,100 - - - 275,580 10,222 287,902
Other receivables 132,883 - 253 21,433 330,872 397 485,838
Cash and bank balances 25,626 - 1,072 971 - - 27,669
13,211,812 - 4,216,881 2,457,629 28,333,321 17,619 48,237,262
* Based on public ratings assigned by external rating agencies including RAM and MARC.
** An ageing analysis for nancial assets past due is provided below.
111
Neither past-due nor impaired
Non- Not subject
Investment grade* Investment grade* to
(BBB to AAA) (C to BB) Not Rated Unit-linked credit risk Past-due** Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000
31 December 2009
LAR
Fixed and call deposits 1,915,971 - 5,110 220,059 - - 2,141,140
Policy loans - - 3,271,971 - - - 3,271,971
Mortgage loans - - 830,477 - - - 830,477
Secured loans 56,500 - 2,070 - - - 58,570
Unsecured loans - - 19 - - - 19
AFS nancial investments
Equity securities - - - - 7,710,202 - 7,710,202
securities - - - - 176,726 - 176,726
Debt securities 235,024 - - - 141,942 - 376,966
Unit and property trust fund - - - - 95,024 - 95,024
Financial investments at FVTPL
Equity securities - - - 1,027,324 - - 1,027,324
Embedded derivatives - - - 1,132 3,323 - 4,455
securities - - - 67,466 7,441,239 - 7,508,705
Debt securities 11,459,673 - 52,089 457,656 6,783,926 - 18,753,344
Unit and property trust fund - - - 24,383 - - 24,383
Derivatives 2,872 - - - - - 2,872
Reinsurance assets 57,359 - 8,618 - - - 65,977
Insurance receivables 4,695 - - - 262,043 284 267,022
Other receivables 129,617 - 137 5,115 205,778 103 340,750
Cash and bank balances 80,215 - 125 1,779 - - 82,119
13,941,926 - 4,170,616 1,804,914 22,820,203 387 42,738,046
* Based on public ratings assigned by external rating agencies including RAM and MARC.
** An ageing analysis for nancial assets past due is provided below.
112
Ageing analysis of nancial assets past due:

Past-due but not impaired
6 Months to Past Due
< 6 Months 12 Months >12 Months Total & Impaired Total
RM000 RM000 RM000 RM000 RM000 RM000
Secured loans 7,000 - - 7,000 - 7,000
Insurance receivables
Outstanding premiums 39 652 9,531 10,222 5,049 15,271
Other receivables 323 19 55 397 150 547
7,362 671 9,586 17,619 5,199 22,818
Insurance receivables
Outstanding premiums 33 159 92 284 464 748
Other receivables 42 11 50 103 179 282
75 170 142 387 643 1,030
Receivables that are neither past due nor impaired
Receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Company.
Receivables that are past due but not impaired
The Company has receivables amounting to RM10,619,000 (2009: RM387,000) that are past due and are unsecured at reporting
date but not impaired.
At reporting date, there are receivables amounting to RM9,000,000 (2009: RM nil ) that have been arranged to be settled. The
remaining balances of receivables that are past due but not impaired are unsecured in nature.
Receivables that are impaired
Receivables that are impaired relate to debtors that are in nancial difculties and have defaulted on payments. These receivables are
not secured by any collateral or credit enhancements.
33. REGULATORY CAPITAL REQUIREMENT
The capital structure of the Company as at 31 December 2010, as prescribed under the RBC is provided below:
2010 2009
RM000 RM000
Eligible Tier 1 Capital
Share capital (paid-up) 100,000 100,000
Reserves, including retained earnings 16,832,137 16,372,171
16,932,137 16,472,171
Tier 2 Capital
Eligible reserves 4,120,967 2,713,661
Total Capital Available 21,053,104 19,185,832
113
34. CONTINGENT LIABILITIES
2010 2009
RM000 RM000
Unsecured:
Arising from litigation cases 653 1,855
As at end of the nancial year, the Company has a few outstanding litigation claims that may incur potential liabilities for the Company.
These outstanding litigation claims arise mainly from disputes on claims settlement, agency and staff industrial relation matters.
35. COMPARATIVES
Certain comparative gures in the Balance Sheet and Income Statement as at 31 December 2009 have been reclassied to conform
with current years presentation.
Re-
Previously stated classication Restated
RM000 RM000 RM000
Balance Sheet
Receivables/Other receivables
- General business and shareholders fund
Inter fund 615,678 (615,678) -
Others 5,620 (5,620) -
621,298 (621,298) -

- Life Fund
Trade 267,022 (267,022) -
Others 330,015 (330,015) -
Interfund 13 (13) -
597,050 (597,050) -
- Investment-linked Business 4,445 (4,445) -
Amount due from brokers
- Investment-linked Business 670 (670) -
Amount due from Life fund
- Investment-linked Business 6,136 (6,136) -
Insurance receivables - 267,022 267,022
Other receivables - 340,750 340,750
114
35. COMPARATIVES (continued)
Re-
RM000 RM000 RM000
Payables/Other payables
- General business and shareholders fund
Inter fund (6,134) 6,134 -
Others (131,278) 131,278 -
(137,412) 137,412 -
- Life Fund
Inter fund (621,827) 621,827 -
Trade (141,835) 141,835 -
Others (294,932) 294,932 -
(1,058,594) 1,058,594 -

- Investment-linked Business (11,094) 11,094 -
Provision for surrender claims
- Investment-linked Business (13,605) 13,605 -
Insurance payables - (141,141) (141,141)
Other payables - (441,928) (441,928)
Other nancial liabilities - (15,809) (15,809)
Provision for outstanding claims (265,015) 265,015 -
Policy benets (2,816,533) 2,816,533 -
Life policyholders fund (36,309,968) 36,309,968 -
Unitholders accounts (1,778,310) 1,778,310 -
General policyholders fund (434) 434 -
(41,170,260) 41,170,260 -
Gross insurance contract liabilities - (41,236,237) (41,236,237)
Reinsurance assets - 65,977 65,977
- (41,170,260) (41,170,260)
115
35. COMPARATIVES (continued)
Re-
RM000 RM000 RM000
Income Statement
Gross premium 4,604,036 (4,604,036) -
Commission and agency expenses (764,199) 764,199 -
3,839,837 (3,839,837) -

Gross earned premiums - 4,588,773 4,588,773
Fee and commission income - 41,802 41,802
Fee and commission expense - (790,738) (790,738)
- 3,839,837 3,839,837

Claims/policy benets paid and payable (2,649,509) 2,649,509 -
Gross benets and claims paid - (2,717,129) (2,717,129)
Claims ceded to reinsurers - 67,620 67,620
- (2,649,509) (2,649,509)
Investment income
- Shareholders fund 21,411 (21,411) -
- General business 16 (16) -
- Life Fund 1,618,194 (1,618,194) -
1,639,621 (1,639,621) -
Other operating income/(expenses) - net
- General business and shareholders fund 4,824 (4,824) -
- Life Fund (54,710) 54,710 -
1,589,735 (1,589,735) -
Other operating revenue - 1,103 1,103
Investment income - 1,640,274 1,640,274
Realised gains and losses - 433,853 433,853
Fair value gains and losses - (460,348) (460,348)
Increase in provision of impairment
- Quoted investments - (25,145) (25,145)
- Unquoted investments - (2) (2)
- 1,589,735 1,589,735

Movements in life policyholders fund (1,635,461) 1,635,461 -
Gross change to contract liabilities - (1,643,146) (1,643,146)
Change in contract liabilities ceded to reinsurers - 7,685 7,685
- (1,635,461) (1,635,461)
116
36. INSURANCE FUNDS
Balance Sheet by Funds
As at 31 December
Shareholders Funds Life Fund Unit-linked Elimination* Total
2010 2009 1.1.2009 2010 2009 1.1.2009 2010 2009 1.1.2009 2010 2009 1.1.2009 2010 2009 1.1.2009
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
(Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated)
Assets
Financial investments 493,117 627,844 314,516 44,450,116 39,556,314 35,371,167 2,435,225 1,798,020 1,189,945 - - - 47,378,458 41,982,178 36,875,628
Reinsurance assets - - - 57,395 65,977 45,668 - - - - - - 57,395 65,977 45,668
Insurance receivables - - - 287,902 267,022 248,538 - - - - - - 287,902 267,022 248,538
Other assets 517,352 621,446 405,841 1,542,827 1,481,717 1,470,746 28,631 13,030 30,861 (515,717) (621,827) (412,592) 1,573,093 1,494,366 1,494,856
1,010,469 1,249,290 720,357 46,338,240 41,371,030 37,136,119 2,463,856 1,811,050 1,220,806 (515,717) (621,827) (412,592) 49,296,848 43,809,543 38,664,690
Equity, Policyholders Fund
and Liabilities
Total Equity 837,209 1,050,768 545,499 - - - - - - - - - 837,209 1,050,768 545,499
Insurance contract liabilities - 434 434 44,212,182 39,457,492 35,685,980 2,413,596 1,778,311 1,205,870 - - - 46,625,778 41,236,237 36,892,284
Other liabilities 173,260 198,088 174,424 2,126,058 1,913,538 1,450,139 50,260 32,739 14,936 (515,717) (621,827) (412,592) 1,833,861 1,522,538 1,226,907
Total policyholders fund
and liabilities 173,260 198,522 174,858 46,338,240 41,371,030 37,136,119 2,463,856 1,811,050 1,220,806 (515,717) (621,827) (412,592) 48,459,639 42,758,775 38,119,191
1,010,469 1,249,290 720,357 46,338,240 41,371,030 37,136,119 2,463,856 1,811,050 1,220,806 (515,717) (621,827) (412,592) 49,296,848 43,809,543 38,664,690
* Refers to elimination of balances payable/receivable between the Funds.
117
36. INSURANCE FUNDS
Balance Sheet by Funds
As at 31 December
Shareholders Funds Life Fund Unit-linked Elimination* Total
2010 2009 1.1.2009 2010 2009 1.1.2009 2010 2009 1.1.2009 2010 2009 1.1.2009 2010 2009 1.1.2009
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
(Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated)
Assets
Financial investments 493,117 627,844 314,516 44,450,116 39,556,314 35,371,167 2,435,225 1,798,020 1,189,945 - - - 47,378,458 41,982,178 36,875,628
Reinsurance assets - - - 57,395 65,977 45,668 - - - - - - 57,395 65,977 45,668
Insurance receivables - - - 287,902 267,022 248,538 - - - - - - 287,902 267,022 248,538
Other assets 517,352 621,446 405,841 1,542,827 1,481,717 1,470,746 28,631 13,030 30,861 (515,717) (621,827) (412,592) 1,573,093 1,494,366 1,494,856
1,010,469 1,249,290 720,357 46,338,240 41,371,030 37,136,119 2,463,856 1,811,050 1,220,806 (515,717) (621,827) (412,592) 49,296,848 43,809,543 38,664,690
Equity, Policyholders Fund
and Liabilities
Total Equity 837,209 1,050,768 545,499 - - - - - - - - - 837,209 1,050,768 545,499
Insurance contract liabilities - 434 434 44,212,182 39,457,492 35,685,980 2,413,596 1,778,311 1,205,870 - - - 46,625,778 41,236,237 36,892,284
Other liabilities 173,260 198,088 174,424 2,126,058 1,913,538 1,450,139 50,260 32,739 14,936 (515,717) (621,827) (412,592) 1,833,861 1,522,538 1,226,907
Total policyholders fund
and liabilities 173,260 198,522 174,858 46,338,240 41,371,030 37,136,119 2,463,856 1,811,050 1,220,806 (515,717) (621,827) (412,592) 48,459,639 42,758,775 38,119,191
1,010,469 1,249,290 720,357 46,338,240 41,371,030 37,136,119 2,463,856 1,811,050 1,220,806 (515,717) (621,827) (412,592) 49,296,848 43,809,543 38,664,690
* Refers to elimination of balances payable/receivable between the Funds.
118
36. INSURANCE FUNDS (continued)
Income Statement/Revenue Accounts by Funds
For the year ended 31 December
Shareholders Funds Life Fund Total
2010 2009 2010 2009 2010 2009
RM000 RM000 RM000 RM000 RM000 RM000
Operating revenue 28,330 21,439 6,640,616 6,207,608 6,668,946 6,229,047
Gross premiums - - 4,890,825 4,588,773 4,890,825 4,588,773
Premiums ceded to reinsurers - - (102,990) (92,825) (102,990) (92,825)
Net earned premiums - - 4,787,835 4,495,948 4,787,835 4,495,948
Fee and commission income - - 44,075 41,802 44,075 41,802
Investment income 28,330 21,439 1,749,791 1,618,835 1,778,121 1,640,274
Gains and losses and other operating revenue 5,191 4,811 1,269,019 (55,350) 1,274,210 (50,539)
Other revenue 33,521 26,250 3,062,885 1,605,287 3,096,406 1,631,537
Gross benets and claims paid - - (3,005,273) (2,717,129) (3,005,273) (2,717,129)
Claims ceded to reinsurers - - 59,610 67,620 59,610 67,620
Gross change to contract liabilities - - (2,987,250) (1,635,461) (2,987,250) (1,635,461)
Net claims - - (5,932,913) (4,284,970) (5,932,913) (4,284,970)
Depreciation and amortisation - - (51,712) (49,864) (51,712) (49,864)
Other operating and management expenses (30) (673) (1,124,012) (1,031,046) (1,124,042) (1,031,719)
Other expenses (30) (673) (1,175,724) (1,080,910) (1,175,754) (1,081,583)
33,491 25,577 742,083 735,355 775,574 760,932
Transfer from Revenue Accounts * 510,967 615,820 (510,967) (615,820) - -
Prot/Surplus before Tax 544,458 641,397 231,116 119,535 775,574 760,932
Taxation (Note 24) (117,853) (135,653) (231,116) (119,535) (348,969) (255,188)
Net prot/surplus after Tax 426,605 505,744 - - 426,605 505,744
* The amount transferred from the Life Funds Revenue Accounts to the Shareholders Funds Income Statement is net of tax.
119
36. INSURANCE FUNDS (continued)
Investment-linked Balance Sheet Statement
For the Year Ended 31 December
2010 2009 1.1.2009
RM000 RM000 RM000
Assets
Financial investments 2,435,225 1,798,020 1,189,945
Other assets 28,631 13,030 30,861
2,463,856 1,811,050 1,220,806
Liabilities
Other liabilities 50,260 32,739 14,936
50,260 32,739 14,936
Net asset value of funds (Note 11) 2,413,596 1,778,311 1,205,870
Investment-linked Fund Income Statement
For the Year Ended 31 December
2010 2009
RM000 RM000
Investment income 47,992 32,061
Realised gains and losses 75,948 (20,520)
Fair value gains and losses 197,786 306,664
321,726 318,205
Management expenses (344) (66)
Surplus before taxation 321,382 318,139
Taxation (23,921) (24,288)
Net prot for the year (Note 11) 297,461 293,851
Information on Cash Flows by Funds
As at 31 December
Shareholders Funds Life Fund Unit-linked Total
2010 2009 2010 2009 2010 2009 2010 2009
Cash ow from:
Operating activities 648,856 (33) (21,265) 76,451 (808) 756 626,783 77,174
Investing activities - - (32,288) (31,931) - - (32,288) (31,931)
Financing activities (648,945) - - - - - (648,945) -
(Decrease)/increase in cash
and cash equivalents (89) (33) (53,553) 44,520 (808) 756 (54,450) 45,243
Cash and cash equivalents:
At beginning of year 147 180 80,193 35,673 1,779 1,023 82,119 36,876
At end of year 58 147 26,640 80,193 971 1,779 27,669 82,119
120
HEAD OFFICE
Great Eastern Life Assurance
(Malaysia) Bhd
Menara Great Eastern
303 Jalan Ampang
50450 Kuala Lumpur
Tel : (603) 4259 8888
Fax : (603) 4259 8000
Website: www.lifeisgreat.com.my
E-mail: wecare@lifeisgreat.com.my
Branch Ofces
Alor Setar
66 & 68 Jalan Teluk Wanjah
05200 Alor Setar, Kedah
Tel : (604) 731 9877
Fax : (604) 731 9878
Branch Administration Manager:
Yap Sun Lin
Regional Manager:
Ken Ong Kean Teik
Batu Pahat
109, Jalan Rahmat
83000 Batu Pahat, Johor
Tel : (607) 432 5562
Fax : (607) 432 5560
Yap Ley Tin
Bintulu
No 313, Lot 3956, Phase 4
Bintulu Parkcity Commerce Square
Jalan Tun Ahmad Zaidi/Jalan Tanjung Batu
97000 Bintulu, Sarawak
Tel : (6086) 336 676
Fax : (6086) 332 601
Michelle Chong Khee Hung
Ipoh
23 & 25 Persiaran Greentown 5
Pusat Perdagangan Greentown
30450 Ipoh, Perak
Tel : (605) 254 2027
Fax : (605) 255 5578
Regional Manager
(Branch Operations): Siah Koh Leong
Regional Manager: Chew Ing Tiong
Johor Bahru
10th Floor, Menara Pelangi
Jalan Kuning, Taman Pelangi
80400 Johor Bahru, Johor
Tel : (607) 334 1022
Fax : (607) 334 9122
Teo Hui Ling
Regional Manager: James Pang Shau Hwa
Klang
No 8 & 10 Jalan Tiara 2A
Bandar Baru Klang
41150 Klang, Selangor
Tel : (603) 3343 6688
Fax : (603) 3341 3398
Matthew Nah Yu Jen
Business Development Manager:
Susan Tan San San
Kluang
No 22 & 24
Jalan Md Lazim Saim
86000 Kluang, Johor
Tel : (607) 772 3529
Fax : (607) 772 3449
Lim Kee Chii
Kota Bharu
No S25/5252-T & U
Jalan Sultan Yahya Petra
15200 Kota Bharu, Kelantan
Tel : (609) 748 2332
Fax : (609) 744 9701
Ang Suat Gee
Sham Irwan Isnin
Kota Kinabalu
Wisma Great Eastern
Level 4 & 5
No 65 Jalan Gaya
88000 Kota Kinabalu, Sabah
Tel : (6088) 252 033
Fax : (6088) 210 437
Deputy Regional Manager
(Branch Operations): Chong Kee Jyh
Regional Manager: Jenny Pook Poh Choo
Head Ofce and Branch Network
121
Kuala Terengganu
2nd Floor, 6F
Bangunan Persatuan Hin Ann
Jalan Air Jernih
20300 Kuala Terengganu, Terengganu
Tel : (609) 622 4959
Fax : (609) 626 5195
Yeo Ai May
Kuantan
A25 Jalan Dato Lim Hoe Lek
25200 Kuantan, Pahang
Tel : (609) 515 7666
Fax : (609) 515 8477
Hong Shee Yi
See Han Chung
Kuching
House No 51, Lot 435, Section 54, KTLD
Travilion Commercial Centre
Jalan Padungan
93100 Kuching, Sarawak
Tel : (082) 412 736
Fax : (082) 426 684
Regional Manager
(Branch Operations): Ting Lee
Regional Manager: Ricky Voon Woo Kian
Lahad Datu
Ground & 1st Floor
MDLD 0819
Jalan Teratai
91100 Lahad Datu, Sabah
Tel : (6089) 884 136
Fax : (6089) 884 226
Charlene Ng Oi Len
Melaka
No 23 Jalan PM 15
Plaza Mahkota
75000 Melaka
Tel : (606) 282 4577
Fax : (606) 283 4579
Regional Manager
(Branch Operations): Bob Lor Bock Thai
Chong Kim
Miri
Lots 1260 & 1261,Block 10
M.C.L.D, Jalan Melayu
98000 Miri, Sarawak
Tel : (6085) 413 299
Fax : (6085) 417 518
Tiong Hie Hung
Branch Development Manager:
Scott Wong Charng Yeon
Penang
25, Light Street
10200 Penang
Tel : (604) 262 2141
Fax : (604) 262 2140
Betty Lim Sut Lang
Alex Chng Seet Loke
Regional Manager: Ken Ong Kean Teik
Seremban
101 & 103
Jalan Yam Tuan
70000 Seremban, Negeri Sembilan
Tel : (606) 763 6120
Fax : (606) 763 1480
Regional Manager
(Branch Operations):
Mohd Azidi Kamaruddin
Yap Hock Ban
Sandakan
Lot 5 & 6, Block 40
Lorong Indah 15
Bandar Indah, Phase 7
Mile 4, North Road
90000 Sandakan, Sabah
Tel : (6089) 213 484
Fax : (6089) 271 343
Joan Lai Kar Kee
Sibu
No 10A-F, Wisma Great Eastern
Persiaran Brooke
96000 Sibu, Sarawak
Tel : (6084) 312 829
Fax : (6084) 333 925
Peter Wong Yuk Ung
Taiping
60 Jalan Barrack
34000 Taiping, Perak
Tel : (605) 805 1021
Fax : (605) 805 1023
Tan Hoe Soon
Tawau
Ground Floor, Wisma Great Eastern
Jalan Billian
91000 Tawau, Sabah
Tel : (6089) 771 322
Fax : (6089) 762 341
Branch Administration Manager: Crystal Ng
Head Ofce and Branch Network
This page has been intentionally left blank.
Great Eastern Life Assurance (Malaysia) Berhad
(93745-A)

(A member of Great Eastern Holdings Limited)
Menara Great Eastern
303 Jalan Ampang
50450 Kuala Lumpur
Tel : (603) 4259 8888 Website : www.lifeisgreat.com.my
Fax : (603) 4259 8000 Email : wecare@lifeisgreat.com.my

Annual Report 2010

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Annual Report 2010

Enviado por

Direitos autorais:

Formatos disponíveis

Great Eastern Life Assurance (Malaysia) Berhad Annual Report 2010

Doing well Delivering more

Você também pode gostar