Lifting lugs analysis (large deformaiton with sigularites)

Hello experts,

In Creo, when I do analysis of the part, the deformation is very high but the maximum stress in the component is less than the material's yield stress. Even when I increase the loads so much that the software gives error of very high deformation, the maximum stress is still less than the material's yield stress. Any explanations? 

Here I have chosen the material S355 of lugs (front plate) and applied force 194.5 kN at 45 degree at the top corner. here i attched my assembly file. my yield stress is 328 Mpa while S355 yield stregth is 345Mpa. but i dont under stand deformation is 68mm which is very high.

Is there a smart solution to this problem?