Despite anticipating an industry slowdown in the second half caused by the struggling economy, Krungthai-AXA Life Insurance expects health insurance products to be the primary factor boosting its premiums later this year.
"The main sources of growth [in the second half] will be the continuation of our push of protection and health products because I feel that health insurance is something that has a lot of potential in Thailand," said chief executive officer David Korunic.
An expansion of the middle-class population and the country's demographic shift to an ageing society are factors contributing to the long-term growth outlook of the company's insurance business, he said.
Mr Korunic declined to disclose the company's annual premium growth target for this year, only stating that the target remains unchanged in spite of Thailand's economic doldrums.
"The economic slowdown will have a slowdown effect on the insurance business as well. However, I think the economy will start to pick up again going forth [as] the Asean Economic Community is coming up soon and there will be a lot of positive impacts going into next year," said Mr Korunic.
The company reported its first-year premiums at 7.49 billion baht in the first six months of 2015, recording a 24% year-on-year expansion rate for the agency channel and a flat growth for bancassurance, but the latter grew by 21%, excluding a one-off huge sale of bancassurance products in May last year.
Overall premiums in the first half grew by 17% year-on-year, valued at 27.73 billion baht.
According to the Thai Life Assurance Association, Krungthai-AXA was the fifth largest life insurer for the January-June period, with a market share of 10.6% after AIA's 21%, Muang Thai Life Assurance's 17.5%, Thai Life Insurance's 12.2% and SCB Life Assurance's 11%.
The proportion of sales channels in the first six months for bancassurance, agency and corporate solutions was registered at 55%, 44% and 1%, respectively.
In 2014, Krungthai AXA Life Insurance announced total premiums of 48.9 billion baht, up 29% year-on-year. Of the total, first-year premiums amounted to 15.5 billion baht, seeing a 29% growth.
The company does not focus on short-term investment in Thailand's equity market as this type of investment is prone to market fluctuations, but rather leans towards a long-term investment position, said Mr Korunic.
The company's total invested assets stood at 148.5 billion baht at the year of last year, composed of 84% in government bonds, 8% in equities in the Stock Exchange of Thailand, 2% in short-term financial instruments and 6% for other assets.