SINGAPORE (THE BUSINESS TIMES) - Insurance company Great Eastern Holdings said its net profit fell to $220 million for its first quarter ended March 31, 50 per cent lower than the $437.6 million in the same period a year ago.

This was due to a lower valuation of investments arising from less favourable financial market conditions in the quarter, resulting in lower mark-to-market gains, the insurance arm of OCBC Bank said on Thursday (April 28).

Non-operating profit for the quarter had fallen 73 per cent to $58.9 million, from $215.7 million a year ago, on the lower mark-to-market gains.

The insurer also recorded a $30.9 million loss from shareholders' fund, from a profit of $46.4 million a year ago, due to mark-to-market loss in equities and collective investment schemes.

Meanwhile, operating profit from its insurance business was up 6 per cent to $191.4 million in the quarter, from $181.3 million a year ago, due to a growth in in-force business.

Higher sales in Singapore drove up its total weighted new sales by 32 per cent in the quarter to $505.3 million, from $381.9 million a year earlier, although this was partially offset by lower sales in Malaysia amid weaker economic sentiments.

Due to lower contributions from Malaysia, its new business embedded value fell 3 per cent to $191.3 million, from $198.2 million a year ago.

Commenting on the results, Great Eastern's group chief executive Khor Hock Seng said the group's performance remained resilient despite the challenging business environment and volatile capital and financial markets, with its insurance business posting good growth momentum in operating profit.

He expects the business landscape will remain challenging in the near term.

Shares of Great Eastern were trading down 14 cents, or 0.7 per cent, at $20.36 as at 10.06am, after the results announcement.