10 Comments

To all Great Eastern agents servicing or who have serviced participating policyholders with policies issued prior to 2005 (both in-force and out-of force), I would like to make this request of you. Please inform those affected policyholders about this issue.

An Independent Review Panel was supposed to have been concluded (by end 2019) prior to the withdrawal of RM 2.37 billion from GELM's participating funds for GEH's divestment purpose. BNM has not made public the independent review assessment status or report. As affected policyholders are the only ones with locus on this issue, I would strongly advise affected policyholders to lodge complaints with BNM's complaints bureau (BNMLlNK), GELM's complaints handling unit and the Financial Ombudsman. They should also demand BNM to either release the independent review panel's assessment report or provide clarity on its current status. I would also recommend policyholders file mass police reports and initiate a class action lawsuit to seek restitution and estop GELM or any other party from further eroding policyholders' rights and interests in the estate

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Please download the 2020 GELM financial statement

https://www.greateasternlife.com/my/en/about-us/media-centre/annual-reports.html

The one-off transfer from participating fund to shareholder's fund of RM 2.64 billion can be found under note 11 (insurance contract liabilities) page 89

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In page 2 "Special dividend of RM23.70 per ordinary share on 100,000,005 ordinary shares declared on 3 March 2020 and paid on 4 March 2020 2,370,000"

In page 1 "Subsequent to the announcements, the contribution was revised to RM2.37 billion and waspaid to the National B40 Protection Trust Fund on 5 March 2020."

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In page 56 of GELM's 2020 Financial Statement "Surpluses in the DPF funds can be distributed on an approximate 90/10 basis in accordance with BNM's guidelines - Management of Insurance Funds to the policyholders and the shareholder 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."

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Download the GELM 2020 interim financial statement using the above link

In page 22 "On 3 March 2020, the shareholders of GELM through an Extraordinary General Meeting approved a transfer of RM2,636,000 (RM'000) from Participating fund to Shareholders' fund."

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https://www.greateasternlife.com/sg/en/about-us/investor-relations/regulatory-announcement.html

Download the 24 January 2019 announcement by GEH using this link

"There will not be a material impact on the earnings of GELM and GEH as the contribution will be from the unallocated surplus of GELM."

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it’s called Project Kancil in GE

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So this is "unethical", so why are the affected parties not even crying out loud?

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