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This article appeared in the July 2023 issue of Forbes Asia. Subscribe to Forbes Asia
Vanich Chaiyawan (left) and Chai Chaiyawan (right), CEOs of Thai Life.
Courtesy of Vanich Chaiyawan.Chai: Bangkok Post Office
This article is part of Forbes’ Thailand’s richest 2023 coverage.See full list here.
The $1 billion initial public offering (IPO) of the 81-year-old Thai Life Insurance Company last July added to the fortune of insurance industry veteran Vanich Chaiyawan, rising two spots at $3.9 billion. and finished 6th. With revenues on hand and life insurance penetration in Thailand in the single digits, his company looks ripe for growth.
Thai Life said part of its IPO funding was used to expand its digital transformation. The company already uses software that mimics the work performed by humans to minimize paperwork, and says 96% of policy submissions are done through the app. The company now accounts for more than a quarter of Thailand’s sole agents and aims to upskill its 46,000 agents based in all 77 provinces. It plans to make greater use of digital tools and data analysis to expand policy distribution channels and strengthen working capital.
According to Fitch Ratings, Thailand has only about 4% life insurance penetration, but Thai Life has room to grow. The company is the country’s second-largest insurer, with a market share of 14% in terms of total premium income in 2022. Last year’s net profit rose 10 percent year-on-year to 9.27 billion baht ($268 million) due to higher investment income.
Thai Life “continuously develops popular products and has a strong sales network,” said Natapol Ponsukcharoenkul, an equity analyst at CGS-CIMB Securities (Thailand), by phone. Told. “We’ve also invested in brand image,” he says. The company is known for its emotional commercials, some of which have gone viral.
Vanich, who started out as a rice merchant, is chairman emeritus of Thai Life, which he bought in 1970. His son Chai is CEO, his daughter Varane and another son Win Yu are deputy CEOs. The head of the family retains a majority stake in the company, which became one of Southeast Asia’s largest last year, even after going public. Japan’s Meiji Yasuda Life Insurance Co. acquired a 15% stake ten years ago and now owns 17%.
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