MTL sets out plans to expand overseas
Muang Thai Life Assurance (MTL) is planning to make investments in medical treatment businesses this year while there are also plans to expand its presence overseas under the company’s strategy to become a regional insurer, said president and chief executive Sara Lamsam.
Last year, MTL saw an increase of 2% in gross written premiums (GNP) to about 70 billion baht, compared to the industry’s growth of 3%. In 2024, the company expects GNP to surge in line with the industry, with new insurance premiums rising 20%, said Mr Sara.
“We are considering expanding to medical treatment businesses, such as clinics and nursing homes, which insurance companies are allowed to do under the law, and we are seeing this trend in markets such as the US, Europe, and in other Asian countries,” he said.
Some of these kinds of investments may be seen this year, Mr Sara said.
MTL is also aiming to be a regional insurance company and eventually an international player in the industry. At present, the company is operating insurance businesses in Cambodia, Laos and Vietnam, while it has maintained a representative office in Myanmar.
In Laos, ST-Muang Thai Insurance has the largest market share in the life insurance business with a 38% first-year premium growth. In Vietnam, its joint venture MB Ageas Life ranks second in the bancassurance segment with a net profit growth of 50% last year.
In Cambodia, MTL has two joint ventures in operation, with Sovannaphum Life Assurance ranking second in the overall market there with a market share of 23%. Dara Insurance last year had total premium growth of 27% and a 40% increase in net profit.
“We are eyeing Indonesia as the next market to expand into in order to capitalise on the growth in the market. which has a population of over 200 million. However, it’s not an easy task,” Mr Sara told the Bangkok Post.
“To be a regional insurance company, we should have a revenue contributed from overseas business of about 30%. It would take us some time to achieve that goal.”
Managing director Sutee Mokkhavesa said MTL is gearing up to serve demographic changes in Thailand, which is entering the stage of being an ageing society.
“In the next 10 years, the percentage of people aged over 65 will more than double to 33% of the total population from 15% at present. That’s what we know for sure, while there are so many uncertainties ahead,” he said.
Mr Sara said MTL would this year continue with its strategy to be the No.1 most trusted partner in life and health planning under the concept of “Happiness, Your Way”.
“We will focus on life protection, retirement solutions as well as health and critical illness. We will continue with a mission to democratise insurance by allowing various groups of the population to have access to insurance,” he noted.