Muang Thai Life Assurance diversifies into healthcare business
Muang Thai Life Assurance (MTL) is actively pursuing plans to diversify its portfolio by investing in medical treatment businesses. The company’s president and chief executive, Sara Lamsam, confirmed this strategic move.
According to Lamsam, this expansion is in response to a trend observed in markets such as the United States, Europe, and other Asian countries where insurance companies are leveraging the opportunity to invest in healthcare facilities like clinics and nursing homes.
The past year saw MTL’s gross written premiums (GNP) rise by 2% to approximately 70 billion baht (US$1.97 billion), a significant achievement compared to the insurance industry’s growth rate of 3%. The company anticipates further growth in the coming years, with insurance premiums expected to rise by a staggering 20% in 2024.
MTL’s strategic plans extend beyond diversification in the healthcare sector. The company is also aiming for regional and international expansion to become a global player in the insurance industry. Currently, MTL operates in Cambodia, Laos, and Vietnam, and maintains a representative office in Myanmar.
Laos has proven to be a particularly successful market for MTL, with ST-Muang Thai Insurance securing the largest market share in the life insurance sector, boasting a 38% growth in first-year premiums. In Vietnam, MTL’s joint venture, MB Ageas Life, ranks second in the bancassurance segment, with an impressive 50% net profit growth recorded last year.
In Cambodia, MTL operates two joint ventures. Sovannaphum Life Assurance holds the second spot in the overall market with a 23% market share. Dara Insurance reported a 27% total premium growth and a 40% increase in net profit last year, reported Bangkok Post.
MTL expansion
Indonesia is the next target for MTL’s expansion plans, in an attempt to capitalise on the country’s large population of over 200 million. However, Lamsam acknowledges that this will not be an easy task. He suggests that for MTL to be recognised as a regional insurance company, overseas business should contribute approximately 30% of the overall revenue.
Addressing the demographic changes in Thailand, managing director Sutee Mokkhavesa, stated that MTL is preparing to cater to an ageing society. In the next decade, the percentage of the population over 65 is expected to double from the current 15% to 33%.
The year ahead will see MTL continuing to be the number one trusted partner in life and health planning under the concept of Happiness, Your Way.
The company will focus on life protection, retirement solutions, health, and critical illness, with a mission to democratise insurance by making it accessible to various groups within the population.
