Muang Thai Life 9M 2024 net profit rises 7.3% despite lower premiums

New business premiums dropped by 2.7% YoY.

Muang Thai Life Assurance (MTL) recorded $0.50b (THB17.3b) in new business premiums, representing a 13.2% market share, year-to-date (9M 2024).

MTL’s gross premiums declined by 3.7% year-on-year (YoY), with its market share falling from 11.5% as of September 2023.

New business premiums dropped by 2.7% YoY, likely due to lower endowment business.

Despite this, MTL’s net profit rose by 7.3% YoY to $0.13b (THB4.6b), supported by higher net investment income and a significant release of reserves earlier in the year.

The company’s annualised return on equity (ROE) for the period stood at 6.8%, a moderate level compared to historical performance.

On a quarterly basis, MTL’s gross premiums written rebounded strongly in 3Q 2024 with a 15.2% increase, whilst net investment income grew by 4.1%.

However, net profit declined quarter-on-quarter as the large reserve release seen in the first half was not repeated.

For CreditSights, MTL’s performance in 9M 2024 reflects challenges in premium growth amidst a sluggish market environment.

However, higher net investment income and reserve releases supported a 7.3% increase in net profit.

Whilst the annualised ROE of 6.8% remains below historical levels, MTL's robust capitalisation, highlighted by its strong RBC ratio, ensures financial resilience.

Signs of recovery in gross premiums written during 3Q24 suggest potential for improvement in the near term, the agency said.