05 March 2024

Thai Life Insurance reported a historical high net profit of 9,707 million Baht driven by strong growth in insurance profit of 12.5%. The Company maintained the second-largest market share in Thailand. Value of New Business or VONB also registered a healthy growth of 5.4% while VONB margin expanded to 62.8% in 2023 due to an effective execution of product strategy. As a result of strong operating profit, Embedded Value (EV) registered a solid growth of 10.6% to 160,580 million Baht or equivalent to 14 Baht per share.

Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance Public Company Limited, or TLI, disclosed the company's performance in 2023, stating that Thai Life Insurance recorded Value of New Business (VONB) at 7,720 million Baht, an increase of 5.4% from last year. VONB margin was enhanced by 6.1 percentage points to 62.8% due to an effective execution of product strategy. The Company’s net profit reached a historical high of 9,707 million Baht, an increase of 4.8% from 2022, mainly driven by a strong growth of insurance profit at 12.5%.

Despite being negatively affected by domestic equity market performance, the Company still posted a positive investment profit through the diversified domestic and foreign equity portfolio which is allocated in prudent manner to ensure sustainable return to shareholders. As of December 31, 2023, over 80% of our total investment assets is invested in fixed income securities with investment grade credit rating.

“Thai Life is running a multi-channel distribution strategy. All distribution channels achieved positive VONB growth in 2023 with healthy VONB margin. 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 65.1%. Our partnership channel was able to generate double-digit growth in VONB of 14.5% due to our product strategy with key bank partner to execute our product strategy”, Mr. Chai mentioned.

The Company generated Annual Premium Equivalent (APE) of 12,295 million Baht and total gross written premium of 90,307 million Baht. Thai Life remains to be the 2nd largest life insurance company in Thailand, according to the market share of total premiums in 2023.

As a result of having a sustainable operating return, our Embedded Value rose by 10.6% from last year to 160,580 million Baht at the end of December 2023.Our capital adequacy ratio stood at 398% as of December 31, 2023, much higher than the regulatory minimum of 140%. We treat a robust capital position as our foundation of sustainability.

On 28 February, 2024, TLI’s Board of Directors approved a dividend payment of 0.50 Baht per share from the net profit in 2023, which includes a special one-time dividend of 0.16 Baht per share to celebrate the milestone of being included in the SET50 index for the first time in 2023. The dividend will be paid after obtaining approval from the 2024 Annual General Meeting of Shareholders and the Office of Insurance Commission.