MTL registers 6% premium growth

Muang Thai Life Assurance (MTL), a leading Thai life insurer, is bullish about its performance in the second quarter after steady premium renewals and sound demand for health protection products pushed the company’s total premiums to grow 6% year-on-year over the first four months.

Chief executive Sara Lamsam said renewal premiums continued to record positive momentum during January-April despite mounting economic uncertainty and inflationary pressures.

However, new business premiums could contract slightly this year due to an exceptionally high comparison base in 2025, particularly from strong sales of health insurance products with co-payment features, said Mr Sara.

“Consumer awareness of health insurance has improved significantly, but purchasing power has been pressured by higher living costs, rising oil prices and global economic volatility,” he said.

“Even though we still see improving growth prospects, management must monitor the business on a monthly basis because of heightened sensitivity to external factors.”

MTL expects to maintain growth in the second quarter, driven mainly by renewal premiums and continued demand for health insurance. However, new premium growth looks challenging amid weaker consumer spending and last year’s elevated base, noted Mr Sara.

INVESTMENT RISKS

In terms of investment, MTL said global financial market volatility and inflation remain major concerns for the remainder of the year.

US bond yields have climbed to nearly 5%, compared with around 2% in Thailand, creating a widening yield gap that insurers must carefully consider when allocating investments between domestic and foreign assets.

Overseas investment opportunities come with regulatory limitations and higher risk charges, requiring insurers to balance returns with capital management requirements, he said.

“Our investment strategy focuses on fundamentally strong assets while maintaining a balanced portfolio capable of navigating increasingly complex market conditions and new accounting standards,” noted Mr Sara.

Amid the economic uncertainty, he said MTL will continue developing insurance innovation, health protection products, and wealth management solutions to support customers across all stages of life, while strengthening long-term growth momentum.

PORTFOLIO ADJUSTMENT

The insurer adjusted its product strategy and portfolio mix this year by reducing sales exposure to high-yield endowment products and focusing more on comprehensive health insurance solutions, particularly for children and families.

The company forecasts strong growth potential in lump-sum health insurance plans targeting children aged 30 days and older, as well as families seeking greater access to private healthcare services.

“D Health Lite” is a new health insurance plan designed to offer flexible and affordable coverage options based on customer budgets. Policies are available for children older than 30 days with coverage up to age 90, offering access to more than 165 hospitals under the MTL network nationwide. Policy coverage includes expenses for ICU treatment, surgery, physician fees, post-hospitalisation outpatient care, and emergency ambulance services.

For wealthy customers looking for effective wealth transfer and legacy planning products, MTL recently launched “Muang Thai Premier Legacy 99/1” and “Muang Thai Legacy Wealth 99/5”, designed for family wealth management.

The products offer high life coverage while reducing premium costs by 30-40% compared with traditional life insurance products. A key feature is fixed surrender value throughout the policy term, cited as the first of its kind in Thailand’s insurance market.

Source – Bangkok News