Maung Thai Life's (MTL) reported a marked improvement in net profit, up 19.9% YoY to THB3.9bn ($118.4m) in 1H2024, with the increase largely driven by the strong performance in 1Q2024, noted CreditSights, a unit of the Fitch Group.
New business and total premiums
Total premiums amounted to THB33,233m ($1,009m) in the first half of 2024, ranking fourth in the industry with a market share of 10.67%, This positions MTL behind AIA, FWD and Thai Life.
For new business premiums, MTL ranked fourth, reporting THB10,779m, translating to a market share of 12.19%. In terms of renewal premiums, MTL also held the fourth position, recording THB22,454m and a market share of 10.07%.
Overall, MTL reported a return on equity of 4.4% in the first half; this figure continues to show a declining trend and CreditSights views it as low.
Balance sheet
The company's balance sheet remained strong, as evidenced by an unchanged risk-based capital (RBC) ratio of 352.5% from the end of 2023 to the end of 2Q2024; excluding Tier 2 subordinated debt, the Common Equity Tier 1 (CET1) ratio would be approximately 315%.
CreditSights added that the Thai economy is projected to improve in the second half of 2024; this growth is expected to be driven by the low base in 2H23 following a delayed government budget. Nonetheless, key risks remain, arising from high household debt, potential export underperformance and domestic political risk.