Thai Life Insurance maintains solid capitalisation, says Fitch

Its new business value (NBV) margin remained stable at 62%.

Thai Life Insurance Public Company Limited (TLI) is seen to maintain solid capitalisation and stable earnings, supported by a strong market position and sound risk-based capitalisation, assessed Fitch Ratings.

TLI’s financial performance stayed steady despite economic challenges and high medical inflation. Its annualised return on equity stood at 11% for the first nine months of 2024, consistent with its 2022 to 2024 average of 10%. 

The company's new business value (NBV) margin remained stable at 62%, supported by endowment and whole life products, whilst the contribution from insurance riders declined slightly but remained strong at 92%. 

A stable investment yield above 3% has further supported earnings.

With a 13.4% market share in total premiums written in 2024, TLI remains the third-largest life insurer in Thailand.

TLI's risk-based capital (RBC) ratio improved to 410% at the end of the third quarter of 2024, up from 398% in 2023, remaining well above the regulatory requirement of 140%. 

Fitch expects the company to maintain a strong capital buffer in the medium term.

However, TLI's exposure to risky assets remains high, with its Fitch-adjusted risky asset ratio at 185% in the third quarter of 2024, up from 182% in 2023.

The company’s portfolio includes equities, sub-investment-grade bonds, and sovereign bonds, which make up 50% of total investments, with 15% classified as risky under Fitch’s criteria.