Life Insurance

Thai Life Insurance Public Company Limited (TLI) has submitted a filing to the Securities and Exchange Commission to offer an initial public offering (IPO) not exceeding 2,384,318,900 shares with a possibility of an over-allotment of 322,547,900 shares in case of over subscription. Established in 1942 as the first Thai-operated life insurance company and considered as the largest life insurance company from total premiums on the latest financial statement on June 30, 2021. The listing of TLI will result in the company being the largest life insurance company in the Thai stock market with total premiums of 20,956 million baht in the second quarter of 2021 and a total asset of 511,443 million baht as of June 30, 2021. In 2Q21, the company recorded a net profit of 4,409 million baht, decreased 44% from the same period of last year, but increased 72% from a net profit of 2,553 million baht in 1Q21. Earnings per share (EPS) rose from THB18.85 in 2Q20 to THB24.79 in 2Q21. In the six-month period, TLI recorded a net profit of 6,656 million baht, turning around from a net loss of 531 million baht for the six-month period ended June 2020. The net profit was also close to a record of 6,719 million baht for the whole year in 2020. In the Thai stock market, Bangkok Life Assurance Public Company Limited (BLA) is the closest to TLI in terms of business operation. BLA also saw its growth this year with a net profit of 751 million baht in 2Q21, increased 19% from 2Q20, while 6M21 net profit was 1,741 million baht, increased 102% from 6M20. BLA recorded a total asset value of 348,527 million baht as of June 30, 2021. TLI expected to use the proceeds from the IPO to invest in digital transformation, promote marketing, strengthen distribution channels through partners, strengthen capital, for working capital and on other objectives. TLI stated that the company achieved 4.26% of average investment yield during 2011-2020.