Phillip Life Assurance plans to increase capital in the second half this year to prepare for the Risk-Based Capital 2 (RBC2) regulation, with a target of attaining 70% growth for first-year premiums via new products and partnerships.
The company increased new capital reserves worth 200 million baht in March, driving up the capital adequacy ratio to 179% at the end of April from total paid-up capital of 3.33 billion. That figure is the fifth highest among 22 life assurance companies in Thailand.
RBC limits the amount of risk a company can take.
Implementation of RBC2, which requires additional reserves set aside for gross premium valuation, is the main reason for the higher equity risk charge.
"Although we set an aggressive business growth target, we have to increase capital, which is expected to occur in the second half this year, after the RBC2 regulation becomes clearer," said chief executive Prachaya Kulvanichpisit.
"We are not worried because our shareholders and Phillip Group have financial strength."
The company targets first-year premiums of 1 billion baht this year, growth of 70%, comprised of the agent channel worth 800 million and other channels valued at 200 million.
Total premiums received are targeted at 2.1 billion baht, a 46% growth ratio, supported by new products, online product distribution, insurtech and expanding partnership networks.
The company also plans to maintain its leading position in online insurance, with a target of selling 160 million baht worth of online insurance products this year.
Phillip has a 71% market share of Thailand's online life insurance market.
"We plan to launch a new life insurance product for the agent channel, a single life insurance product for the online channel and policy loan called eLOAN as an additional feature for mobile apps," said Mr Prachaya.
To support its ambitious growth target, the company set its sights on becoming a "wealth advisory organisation", with a plan to educate insurance agents as financial advisers with support from Phillip Group, he said.
