Thai Life Insurance has recently undergone a significant transformation in its product portfolio, marking a strategic pivot towards endowment and whole life policies. This shift has driven a notable increase in premium inflows, but it has concurrently exerted pressure on the company’s overall profitability, according to a recent report by Maybank Securities.
Company executives believe that, in the near term, growth momentum may remain modest, as the market gradually stabilises and demand pressures ease. Nevertheless, earnings growth is expected to remain steady over the coming years, supported by the natural stabilisation of premium expansion and improvements in claims management processes.
In the health insurance segment, sales are projected to remain subdued in early 2026, largely due to a high base effect compared with the previous year. In October 2025, first-year health premiums fell by 43%, reflecting the aftermath of co-payment rules introduced in March 2025, which had previously boosted sales.
By contrast, the company’s strategic focus on endowment and whole life products has proven effective in driving premium growth. Annual growth rates for these products reached 42% and 87% respectively, lifting first-year total premiums by 19%. However, these products are generally less profitable than standard health policies, resulting in pressure on margins.
As a consequence, the company’s new business value (VNB) margin is expected to decline to approximately 45% in the fourth quarter of 2025, down from 57% a year earlier. Total VNB is projected to fall by 15%, reaching around USD 0.13 billion (THB 4.1 billion), even as annualised premiums increase by roughly 8%.
Claims may remain elevated, particularly due to a rise in influenza cases. Yet, core profit for the fourth quarter is anticipated to increase by around 2% year-on-year, reaching approximately USD 0.087 billion (THB 2.72 billion), supported by the release of contractual service margins and profitable investment returns.
Looking further ahead, core profit for 2025 is expected to rise by around 10%, with a stable annual growth rate of approximately 6% projected for 2026 and 2027. This outlook is underpinned by consistent health premium growth, substantial contractual service margin balances of USD 2.91–3.10 billion (THB 91–97 billion), and operational cost reductions resulting from claims normalisation under the co-payment framework.
In summary, Thai Life Insurance’s strategic product realignment has successfully driven premium growth, yet the contraction in margins underscores the delicate balance between expansion and profitability in today’s competitive insurance market.