Press Releases
Thai Life Insurance reported nine-month result of 2023 with Value of New Business (VONB) of 5,366 Million Baht. VONB margin improved to 62.4% through an effective execution of product strategy. Net profit for nine-month period is 7,729 million, consisting of insurance profit which increased by 5.8% from the same period last year.
Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance Public Company Limited, or TLI, disclosed the company's operating performance during the first nine-month period of 2023, stating that Thai Life Insurance achieved Value of New Business (VONB) of 5,366 Million Baht, an increase of 4.2% from the same period last year. VONB margin was enhanced by 9 percentage points to 62.4% due to an effective execution of product strategy.
The Company generated Annual Premium Equivalent (APE) of 8,599 Million Baht and total gross written premium of 63,589 Million Baht. Insurance profit increased by 5.8% to 5,718 Million Baht so net profit rose to 7,729 million during nine-month period.
All distribution channels delivered positive VONB growth during the first nine-month period of 2023. Our agency channel has continuously improved quality of sales and shifted toward products which generate more sustainable profits, as reflected in higher VONB margin of 63.0%. Our partnership channel was able to generate growth in VONB despite lower APE. This was due to our product strategy with key bank partner where we were able to sell high-value products bundle with other products.
Our net profit in the third quarter of this year was 2,088 Million Baht, bringing nine-month net profit to 7,729 million Baht. Insurance profit achieved 5.8% growth. However, Net profit was negatively impacted by lower investment profit due to lower gain on investments and fair value changes from market performance and outlook of equity markets.
The Company’s diversified investment portfolio is allocated in prudent manner to ensure sustainable return to shareholders. As of September 30, 2023, over 80% of our total investment assets is invested in fixed income securities with investment grade credit rating.
Our capital adequacy ratio stood at 372.5% as of September 30, 2023, much higher than the regulatory minimum of 140%. We treat a robust capital position as our foundation of sustainability.
Mr. Chai mentioned that Thai Life continues to focus on sustainable business operations through delivering value to all stakeholders, including customers, shareholders, employees, business partners, governing organizations, and society. In addition, the company integrates ESG into business strategies in various dimensions including environmental, social and economic & governance. Thai Life received the Insurance Asia Awards 2023 in the category of “Sustainable Insurance Initiative of the Year – Thailand” for the vision of sustainability operations and sharing benefits back to society. In October 2023, Thai Life received CGR Rating Score (Corporate Governance Report of Thai Listed Company) with “5 stars” or “Excellent” level from Thai Institute of Directors (IOD).