Great Eastern’s profits halved as investment returns fall 63%

Profits at other insurers in Singapore and South Korea are also expected to suffer

Singapore’s largest insurance group, Great Eastern Holdings, has reported profits of $178mn for 2008, halving 2007 record profits of $357mn. Investment returns were largely to blame, falling by 63% to $26.8mn because of mark-to-market losses on foreign exchange and other investment options, but the company’s core insurance business also suffered in 2008. Profits from life and general insurance operations slid 41% to $207mn.