Thai Life Insurance Public Company Limited (TLI) has demonstrated robust capitalization and stable earnings, according to a recent assessment by Fitch Ratings. Despite facing economic challenges and high medical inflation, TLI has maintained a solid financial position, supported by a strong market presence and sound risk-based capitalization.
For the first nine months of 2024, TLI reported an annualized return on equity of 11%, consistent with its average return of 10% over the past three years (2022-2024). The company’s new business value (NBV) margin remained stable at 62%, driven by its endowment and whole life products. The contribution from insurance riders showed a slight decline but remained significant at 92%.
TLI also benefitted from a stable investment yield exceeding 3%, further bolstering its earnings.
With a 13.4% market share in total premiums written for 2024, TLI remains Thailand’s third-largest life insurer. The company’s risk-based capital (RBC) ratio rose to 410% at the end of Q3 2024, up from 398% in 2023, well above the regulatory minimum of 140%. Fitch expects TLI to continue maintaining a strong capital buffer in the medium term.
However, the insurer’s exposure to risky assets remains notable. TLI’s Fitch-adjusted risky asset ratio stood at 185% as of Q3 2024, slightly up from 182% in 2023. Its portfolio includes equities, sub-investment-grade bonds, and sovereign bonds, which collectively account for 50% of its total investments. Of these, 15% are considered risky under Fitch’s criteria.
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