3 Surprising Truths Buried in Great Eastern’s Latest Financials

Introduction: More Than Meets the Eye

A 21% drop in sales is the kind of headline that signals trouble. It suggests declining demand, market share loss, or a flawed strategy. However, Great Eastern’s financial results for the first nine months of 2025 present a fascinating paradox. A closer look reveals this sales dip isn’t a sign of weakness but the outcome of a deliberate and successful strategic pivot. This analysis unpacks the story hidden beneath the surface-level numbers, showing how a drop in sales can mask a calculated move toward greater, more sustainable profitability.

1. The “Less is More” Paradox: Sales Dipped, but Future Profitability Soared

At first glance, the numbers are jarring: Total Weighted New Sales (TWNS) for the first nine months of 2025 declined by 21% compared to the previous year. But this figure is immediately contradicted by a far more important metric for long-term health. Over the same period, New Business Embedded Value (NBEV)—a key measure of the long-term profitability of new sales—grew by a robust 16%.

This divergence wasn’t accidental; it was by design. The company engineered a shift in its product mix, moving away from “lower single premium sales” to proactively meet “emerging customer needs for longer-term financial planning priorities.” This customer-centric pivot means that while the total volume of sales went down, the quality and value of each new policy sold went up significantly. This wasn’t a slump; it was strategic architecture, prioritizing deeper customer relationships over transactional volume.

2. The Real Engine of Growth: It’s Not Just About Selling Insurance

Another surprising insight emerges when dissecting the group’s profit sources. While “Profit from Insurance Business” saw only modest growth of 1%, the “Profit from Shareholders’ Fund” surged by an impressive 45%.

This explosive growth was driven by more than just “favourable market conditions.” The company’s results credit its success to “robust investment results” supported by “effective portfolio management.” This critical detail shifts the narrative from one of passive luck to one of active skill. It reveals that a major pillar of Great Eastern’s financial strength is its prowess as a sophisticated investment manager, expertly executing a strategy to generate returns, not just collecting premiums.

3. A Calculated Risk in a Key Market

This strategic pivot was not a diffuse, global change but a focused and audacious move centered in the company’s core Singapore market. The financial reports explicitly state that the group’s overall sales decline was “mainly due to lower single premium sales in Singapore.” Deliberately engineering a volume reduction in your primary market is a counter-intuitive maneuver that requires immense strategic confidence and discipline.

Yet the gamble paid off precisely as planned. The impressive growth in long-term profitability (NBEV) was primarily “driven by improved product mix in Singapore.” This demonstrates a masterful execution of a clear strategy—sacrificing lower-value volume to build a more profitable and sustainable foundation for the future.

Group CEO Mr. Greg Hingston contextualized this performance, emphasizing the role of disciplined strategy:

The Group’s Profit Attributable to Shareholders grew year-on-year, through the disciplined execution of the Group’s strategy and continued focus on driving sustainable long-term growth. Stronger investment performance contributed to the improvement, while the underlying insurance business continued to show steady growth, supported by effective in-force portfolio management. The Group’s new business sales performance remains robust with year-on-year growth in NBEV, reflecting the Group’s ability to adapt to changing market demand while maintaining growth that supports the long-term profitability of the Group.

Conclusion: A Lesson in Strategic Focus

Behind Great Eastern’s headline numbers lies a sophisticated and cohesive strategy built on three interconnected pillars. First, it redefined “growth” by prioritizing product quality and customer needs over raw sales volume. Second, it leveraged expert investment management as a powerful engine for profit. And third, it demonstrated that true strength lies in the disciplined execution of a bold plan.

In a business world often fixated on top-line growth, Great Eastern’s results prompt a powerful question: Is the smarter play to sell less, but sell better?

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