Asian life insurers maintain strong capitalisation

Singapore Life and Muang Thai Life exhibit some financial leverage, unlike others.

Life insurers in select Asian countries have shown strong capitalisation with financial leverage ratios remaining well below the thresholds set for the insurers' respective IFS Ratings, according to Fitch Ratings.

However, Singapore Life and Muang Thai Life exhibit some financial leverage, unlike others in the peer group.

The company profiles of the insurers in the peer group are rated as ‘Favourable’ to ‘Moderate’ compared to peers in their respective markets. 

Muang Thai Life and Thai Life benefit from strong domestic market franchises, whilst CTF Life, GLHK, Singapore Life, and YF Life operate on a smaller scale.

Profitability across the group is solid, with operating profits supported by gains from mortality and investment returns, as well as a focus on regular premium products. 

Whilst new business growth is expected to continue, factors such as intense competition and rising medical costs may limit improvements in new business value margins in the short term.
Investment portfolios within the group consist primarily of fixed-income securities, with limited exposure to equities.