Thai Life Insurance announced a high profit of 9.265 billion baht for its 2022 operating performance. First-year premiums, calculated annually, increased by 13%, while VONB increased by 31% as a consequence of growth in all sales channels in accordance with the multi-channel strategy and long-term profitable product development in response to the vision of being a sustainable life insurance company,
Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance Public Company Limited, discloses the Company's business performance in 2022. Despite the fact that the life insurance market will confront the issue of an economic slowdown in 2022, the number of people infected with COVID-19 increased dramatically in the first half of this year. On the other hand, Thai Life Insurance still has a strong performance, with the Company's net profit at 9,265 million baht, an increase of 10% from 2021, and annual premium equivalent (APE) at 12,819 million baht, an increase of 13% from previous year.
Whereas the sum of the expected profit from the first day to the end of the contract or the Value of New Business (VONB) is 7,325 million baht, achieved a higher growth of 31%, with the VONB margin consistently growing and an Embedded Value of 145,170 million baht, an increase of 2% over the previous year as a result of growing in APE and VONB from all channel.
"The Company has a historical-high of net profit representing a year-on-year, which results in high growth and reflects success in business operations according to the multi-channel strategy and digital development, or digital transformation, of the Company. The agent channel has developed digital tools for efficient sales and customer care, such as the MDA PLUS application, as well as focused on sustainable profitable product sales while maintaining a strong partnership channel, and the Company is also developing digital sales tools and improving the performance of the operating system to support the partnership's market expansion," said Mr. Chai.
In terms of product strategy, the Company is committed to developing products that can meet the changing needs of customers in accordance with the customer-centric strategy, as well as focusing on products that can generate good profits and less sensitive to the interest rate movement, such as participating products, investment-linked products, and riders. We believe this strategy would continue to sustain our profitability against the economic volatilities.
Mr. Chai added that despite of the rate of COVID-19 medical expense claims rising during in the previous year, it did not affect the operation due to the fact that Thai Life Insurance did not sell COVID-19 products that give a lump-sum payment and the COVID-19 medical claims started to decline i9n the second half of 2022. In addition, the Company's Capital Adequacy Ratio (CAR) remained strong at 420% as of December 2022, higher than Office of Insurance Commission minimum requirement.
And to make Thai Life Insurance's business operations sustainable in line with the vision of becoming a sustainable life insurance company, the Company has therefore developed a sustainable development master plan that covers ESG goals in the areas of environment, society, and governance through the formulation of strategies and guidelines covering all departments within the Company. At the same time, the emphasis is also placed on sustainable investment.