Thai Life Insurance reported nine-month result of 2022 with Annual Premium Equivalent up 26%, Value of New Business up 29%. All channels continued to deliver strong growths. Net Profit was closed at more than 8.0 billion baht. The Company was not affected by insurance with a lump-sum payment and will continue to provide life solutions on life insurance, health insurance and personal financial planning to customers as well as create value for all stakeholders.
Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance or TLI announced the third quarter 2022 results that“TLI’s results has continued to grow. Our APE grew 26% to 9,641 million baht compared to the same period of last year. Value of New Business (VONB) rose by 29% to 5,151 million baht from the first nine months of last year, resulting in the increase in VONB margin to 53.4%. Its market share rose to 14.1%.”
All channels have recorded strong APE and VONB growths, demonstrating the success of our multi-channel strategy. Our Agency channel had delivered a strong year-on-year VONB growth of 25% thanks to the efficiency in expanding the market, increasing premium and agents’ recruitment through various marketing campaigns.
“The Company focuses on offering upskilling and reskilling for agents, transforming them into digital agents by uplifting their digital skills and become the Life Solutions Partner who can take care of life and provide financial planning for customers for every life stage, life event and lifestyle, as well as offer personalized customer experience promptly. TLI has developed applications such as TL Pro Plus, which enables the agents to offer products, accept premium payment and submit cases to the Company easily through mobile phones or tablets,” Mr. Chai said.
Our partnership channel had also delivered an excellent year on year VONB growth of 41%, because of the business rebound after the pandemic and the successful execution of our product strategy with our partners.
Our product strategy remains focus on products that are profitable in the long term and less sensitive to the interest rate movement, such as participating product, investment-linked product, and riders. We believe this strategy would further sustain our profitability against the uncertain economics.
Mr. Chai added that TLI was able to sustain our net profit at 8,020 million baht for the first nine months of 2022. More initial loss of net profit resulted from our strong new business growth. Writing new business will normally have an initial loss in the first year because the front-end total expenses is higher than the first-year premium. Nevertheless, the new business will start generating strong profits in subsequent years, as indicated by our healthy VONB margin.
In addition, Thai Life didn’t sell COVID-19 products that gives a lump-sum payment when policyholders are infected with COVID-19. The higher medical claim was from our health riders which compensate the cost of hospitalization including COVID-19. We have observed a downward trend on medical claim from COVID-19 since the peak in March this year.
“Our capital adequacy ratio was 358% as of September 2022, much higher than OIC’s regulatory minimum of 140%. We treat a robust capital position as our foundation of sustainability. Global economy has become more volatile with higher uncertainty since the beginning of 2022. Thai Life is able to sustain our VONB growth and financial position as we have a clear product and growth strategy as well as best-in-class management team. According to our business purpose, Thai Life will continue to provide life solutions to our customers and create value for all our stakeholders”, Mr. Chai said further.