Select life insurers show strong profitability – Fitch Ratings

Operating profitability of insurers from Hong Kong, Singapore, and Thailand pose with sound mortality gains and favourable investment returns.

The profitability of most insurers is assessed as 'strong.' Operating profitability is generally underpinned by sound mortality gains and favourable investment returns, said Fitch Ratings. Namely, the peer-reviewed insurers are Thai Life, YF Life, Muang Thai Life, FTLife, and Singapore Life.

Although the group is expected to sustain new business growth, the potential impact of capital-market volatility may limit the insurers' capacity to enhance operating results in the near term.

The capitalization and leverage of the peer group consistently meet or exceed the 'Strong' level, providing robust support for the insurers' Insurer Financial Strength (IFS) Ratings. 

ALSO READ: Recent regulatory changes to boost Taiwan’s life insurance sector: Fitch Ratings

Moreover, the financial leverage ratios remain well below the specified guidelines for each insurer's respective IFS Ratings, with Thai Life and YF Life having no financial leverage.

Fitch Ratings evaluates the company profiles of the peer-reviewed life insurers as ranging from 'favourable' to 'moderate' when compared with other insurers in their respective countries. Muang Thai Life and Thai Life benefit from substantial franchises in their domestic market, while FTLife, Singapore Life, and YF Life operate on a relatively smaller scale.