Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance Public Company Limited, or TLI, disclosed the company's operating performance in the first six-months of 2023, stating that Thai Life Insurance achieved Value of New Business (VONB) of 3,289 Million Baht. VONB margin was enhanced by 6.1 percentage point to 57.6%. The Company generated Annual Premium Equivalent (APE) of 5,173 Million Baht and total gross written premium of 39,345 Million Baht.
We were able to sustain the same levels of VONB as we shifted our product mix towards higher-value protection products. Our agency base is expanding further and is on the path to boost productivity through digital transformation plan, including promoting online application MDA 4 PLUS.
For partnership channel, we continued to maintain our extensive partnership covering all income groups. Our higher-value protection products have been well received and improved overall profitability.
Our net profit in the second quarter of this year reached 2,512 Million Baht, representing a year-on-year growth of 24.4%. This strong growth was mainly driven by our improved insurance profit. The good result in the second quarter of this year has restored the first-half net profit to a similar level of the same period of last year at 5,640 Million Baht. Insurance profit achieved 19.0% growth during the first six-months 2023, while investment profit was lower due to lower gain on investments and fair value changes from market performance and outlook of equity markets.
Mr. Chai mentioned that despite incurring a loss on investment in STARK during 2Q2023, the company generated net gain on investment amounting to 470 Million Baht, an increase by 6.7% from the same period last year.
Our Embedded Value (EV) increased from 145,170 Million Baht at the end of December 2022, to 152,990 Million Baht at the end of June this year, registered a healthy growth of 5.4% despite paying shareholder dividend of over 3,400 Million Baht in May. The growth was mainly supported by our sustainable EV operating profits.
The Company’s diversified investment portfolio is allocated in prudent manner to ensure sustainable return to shareholders. As of June 30, 2023, over 80% of our total investment assets is invested in fixed income securities with investment grade credit rating.
Capital position of the Company is solid as assessed by international credit ratings firm. In 2023, Fitch Ratings affirmed Thai Life at the A- insurer financial strength rating and the AAA(tha) national insurer financial strength rating with stable outlook.
Our capital adequacy ratio stood at 398.2% as of June 30, 2023, much higher than the regulatory minimum of 140%. We treat a robust capital position as our foundation of sustainability.
Thai Life continues to focus on sustainable business operations and integrates ESG into business strategies in various dimensions including environmental, social and economic & governance. We promoted green building project and launched several projects to support better life for community. In May 2023, after reviewing from over 800 companies, funds, and investment trusts, Thaipat Institute has recognized Thai Life as 1 out of 15 securities in ESG 2023 Emerging List and listed in ESG 100 for the first time.