Singapore - Following the global economic downturn, profits at Singapore's largest insurance group, Great Eastern Holdings, halved in 2008, the company said on Tuesday.

Full year profit for 2008 tumbled to 272.4 million Singapore dollars (178.56 million US dollars), a 50 per cent drop compared to the record high of 546.9 million Singapore dollars the group achieved in 2007.

"For 2008, the group's performance was affected by the financial downturn which directly impacted the investment performance of all the funds," the company said in a statement.

For the fourth quarter of 2008, Great Eastern reported a profit of 76.5 million Singapore dollars, a drop of 47 per cent on a year-on-year basis.

"The challenging times are expected to continue into 2009," Group Chief Executive Officer Ng Keng Hooi said in a statement.

Great Eastern, a subsidiary of OCBC Bank, leads the insurance market in Singapore and Malaysia. The company also operates in China, Indonesia, Vietnam and Brunei. (dpa)