Friday, July 31, 2009

Great Eastern Announces One-time Redemption Offer to GreatLink Choice Policyholders

http://www.lifeisgreat.com.sg/en/jsp/corporate/files/p_jul_3109.jsp

11 comments:

Loh Hon Chun said...

GE looks to have some heart.

Tan Kin Lian said...

When GE buys back these products, someone has to take a big loss. Will it be the shareholders or the other policyholders? It will be most inequitable if the other policyholders have to bear this loss in the form of reduced bonuses. I hope that the GE policyholder will ask MAS about this matter, or GE will clarify it.

Loh Hon Chun said...

Agree with TKL. It looks like at least the shareholders are going to get back their money but other policyholders may going to be affected.

Loh Hon Chun said...

I meant the GLC policyholders are going to be happy but the rest may not.

Anonymous said...

There are ways to minimize impact on existing policyholders:

1. reduce/recover commissions from agents that sold the products or get them to chip in a portion;

2. reduce operating expenses with more creative and innovation ;

3. reduce dividend payout to shareholders;

4. and many more.

As long as it is thinking in the best interest of clients, it should be kudos to the company. At the very least, it is doing something that other financial institutions (in singapore and hong kong) are not willing to do. Not everyone is as negative. There are those who think big and more positive and forward looking.

This is a lesson in class and style.

Anonymous said...

Yes, kudos to this company for this act that has customers at heart. I will certainly move my investments to GE from now on. Gives me better peace of mind that they will not turn their back like the others FI involved in the minibonds

Parka said...

Well, Great Eastern has chosen to do what's right and just than to do what's going to please everyone. Money is always there to be made. I'm pretty sure these policyholders will look towards doing more business with GE in the future.

This is a very good case of give-first-before-you-receive.

Thumbs up to them.

Anonymous said...

While shareholders of OCBC & GE have to bear the brunt, I think this has created a positive image on their products which may turn out to be a win-win situation for both OCBC/GE & retail investors/customers.

Anonymous said...

Great Eastern - A truly customer focused company. Well done to its management!

Anonymous said...

With this continuous MB saga, who dare to talk to the 10FIs or DBS? If GE is suffering a decline in revenue from insurance etc, same goes to the others. With this announcement, people tends to see GE in a different light. FA will be able to talk to clients with pride. Each day, one business gain by GE is one business lost by the 10 FIs. The Sgp brinksmanship was broken by GE. The 10 FIs cannot just sit and wait as they must know that each customer lost takes even more effort to bring them back. Low moral FA also contribute to bad sales. High turnover i.e. FA switch from 10 FIs to GE as it is easier to sell in GE. Given such change, something must happen. My bet is HL and OCBC will lead to way. Just wait and see.

Anonymous said...

The Next Company handling possible similar case 'Prudential Yield 15/20". Anyone having Yield 15/20 Investment? It's seems like their protection level left around 10%... 14 companies turned default. Will Prudential follows Great Eastern's move. Pls advise...

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