15 May 2024

Thai Life Insurance reported the first quarter 2024 result with a strong net profit of 3,132 million Baht. Value of New Business or VONB also registered a healthy growth of 7.9% at 1,836 million Baht. VONB margin expanded by 6.1 percentage points to 62.3%. All channels achieved VONB growth due to an effective execution of product strategy and enhancement of channel efficiency

Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance Public Company Limited, or TLI, disclosed the company's performance in the first quarter of 2024, stating that Thai Life Insurance recorded Value of New Business (VONB) at 1,836 million Baht, an increase of 7.9% from last year. VONB margin was enhanced by 6.1 percentage points to 62.3% due to a continuous effective execution of product strategy.

All distribution channels achieved positive VONB growth during the first quarter of 2024. Thai Life focuses on a multi-channel distribution strategy. Our agency channel generated an impressive VONB margin of 65.7%, reflecting our commitment to enhancing sales quality through customers’ personalization enabled by digital tools, MDA 4 Plus application, and a strategic focus on products with sustainable profitability. Our partnership channel continued to register growth in VONB due to our strong collaboration with key partners, offering products in response to customers’ needs.

The company focuses on products which creates long-term value and are less affected by the interest rate movement. This product strategy would generate sustainable profitability in the midst of uncertain economic conditions.

Mr. Chai said that the company generated Annual Premium Equivalent (APE) of 2,945 million Baht and total gross written premium of 21,360 million Baht, up 12.1% from the same period last year.

Thai Life recorded a strong net profit of 3,132 million Baht during the first quarter of 2024. Majority of profit came from insurance profit amounting to 1,720 million Baht. Despite the domestic equity market downturn, the company still posted a positive gain on investments through the diversified domestic and foreign equity portfolio which is allocated in prudent manner to ensure sustainable return to shareholders. As of March 31, 2024, over 80% of our total investment assets is invested in fixed income securities with investment grade credit rating.

Our capital adequacy ratio stood at 391% as of March 31, 2024, much higher than the regulatory minimum of 140%. We treat a robust capital position as our foundation of sustainability. Capital position of the Company is solid as assessed by international credit ratings firm. In March 2024, Fitch Ratings affirmed Thai Life Insurer Financial Strength (IFS) Rating at 'A-' (Strong) and National IFS Rating at 'AAA(tha)' with the stable outlook.

“Thai Life Insurance’s vision is "To be a value-driven life insurance company of sustainability." The company is actively promoting sustainable business practices aligned with ESG principles, evident in various initiatives and ESG-related projects. These include projects focused on corporate governance, social development, and an increased investment in ESG corporate bonds.”

“Thai Life Insurance received several awards which reflect our success in conducting sustainable business operations. Awards include “Sustainable Insurance Initiative of the Year – Thailand Awards 2023” from Insurance Asia, Singapore, “Most Innovative ESG Insurance Provider – Thailand 2024” from International Finance Awards 2024, United Kingdom and “Leading Investor for Corporate ESG Bond 2023” from Thai Bond Market Association.” Mr. Chai said.