Asian Life Insurers: Strong Capital Amid Market Changes

Fitch Ratings reveals that life insurers in certain Asian countries have maintained robust capitalisation. Their financial leverage ratios are comfortably beneath the thresholds specified by their respective IFS Ratings. This showcases a stable financial footing and a capacity to handle potential risks.

However, not all insurers follow the same pattern. Singapore Life and Muang Thai Life stand out as they display a degree of financial leverage that differentiates them from their peers. Despite this, the overall company profiles of the insurers in the peer group range from ‘Favourable’ to ‘Moderate’ when compared to others in their individual markets. Muang Thai Life and Thai Life enjoy a strong presence in their domestic markets, while CTF Life, GLHK, Singapore Life, and YF Life operate on a more modest scale.

Profitability across the board is dependable, bolstered by mortality gains, investment returns, and an emphasis on regular premium products. Looking ahead, new business growth is anticipated to persist, although challenges such as fierce competition and escalating medical costs might impede immediate enhancements in new business value margins. The investment portfolios of these insurers are predominantly composed of fixed-income securities, with a relatively small exposure to equities.

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