Muang Thai Life bags $4b in total new business premiums for 9M 2024

Despite increased acquisition spending, MTL’s topline declined year-on-year during.

Unlike its parent company, Kasikornbank (KBank), Muang Thai Life Assurance (MTL) avoids potential asset quality risks linked to small and medium enterprises (SME) and mortgage portfolios, according to CreditSights, a Fitch Solutions service.

Thailand's life insurance industry reported total new business premiums of $3.81b (THB131.5b) for the first nine months of 2024 (9M 2024), a slight year-on-year decline of 0.4% due to reduced single-premium product sales.

MTL retained its fourth-place ranking in both new business premiums and total premiums, recording $0.50b (THB17.3b) and $1.46b (THB50.5b), respectively.

Despite increased acquisition spending, MTL’s topline declined year-on-year during 9M 2024. Gross premiums written fell by 3.7%, whilst new business premiums dropped 2.7%.

However, the company saw a 7.3% rise in net profit to $0.13b (THB4.6b), driven by higher net investment income and a significant release of reserves. Its annualised return on equity (ROE) stood at 6.8%.

MTL's risk-based capital (RBC) ratio was robust at 381%, significantly above the 140% regulatory minimum, with a core equity tier 1 (CET1) ratio of approximately 350% as of September 2024, underscoring its strong capital position.

($1.00 = THB34.24)