Great Eastern's profits crashed 77% to $18.6m

Plagued by US tapering woes.

According to a release, Great Eastern Holdings Limited registered profit attributable to shareholders of S$18.6 million for Q2-13 and S$226.1 million for YTD-June13, a 77% and 34% year-on-year decline respectively.

The group noted that towards the end of the quarter, financial markets reacted to the potential tapering of the US quantitative easing programme, resulting in a significant unrealised mark-to-market loss in the Singapore Non-participating Fund.

Meanwhile, the group reported a year-on-year increase in operating profit from insurance business of 32% to S$154.5 million for the quarter ended 30 June 2013 and 29% to S$285.7 million for the half year ended 30 June 2013, on the back of healthy underwriting performances across its life assurance funds.

In Q2-13, the Group recorded a 34% year-on-year rise in total weighted new sales to S$263.9 million on better performance across all geographic markets. Sales were driven by a robust quarterly performance in Singapore, which experienced growth across all its distribution channels.

The Singapore business benefited from sustained sales momentum in the bancassurance channel, growth through the agency and advisory channels, and recapture of maturing policies.

In Malaysia, sales of conventional regular premium investment-linked products continued to grow, further strengthening its market leading position.

There was also an increase in the sales of takaful products. On a half year basis, total weighted new sales for the Group grew 26% year-on-year to S$468.6 million.