Prudential Life Assurance (Thailand) has set a target of double-digit annual growth in 2026 as it works toward becoming one of the three largest life insurers in Thailand by new business, aligning its local plan with the wider strategy of parent company Prudential plc.
According to Bangkok Post, chief executive Bundit Jiamanukoonkit said Prudential Thailand’s new business growth in 2025 was more than twice the domestic industry’s roughly 6% expansion, with contributions from agency, bancassurance, and digital business. He said the company is using multiple distribution channels and varied product structures to serve different customer segments nationwide. These include adjusting benefits and premium patterns through its agency force, bank partners, and online platforms to fit differing income levels and protection needs.
Macroeconomic conditions such as elevated fuel prices and weaker household purchasing power are influencing demand for protection products, Bundit said. In this environment, Prudential Thailand is concentrating on life and health cover for middle-income households and lower-income or more financially exposed groups. The insurer has introduced product series with flexible premiums and benefits that it positions as a way to help households manage volatility in income and expenses. Policies that incorporate deductibles and co-payment components – described internally as “affordable premiums” – are being used to reduce initial premium payments while retaining coverage for severe or high-cost events. “This approach enables policyholders to better manage cash flow without compromising financial protection,” Bundit said, as reported by Bangkok Post.
Health insurance remains a central business line in Prudential Thailand’s local strategy. The company is offering health plans that it says are structured to reflect rising medical expenses and to provide cover for unplanned hospital and treatment costs, particularly for serious conditions. Deductible-based health plans are being marketed as an option for customers who are focused on managing premium outlay but still want access to inpatient and major medical coverage. These products are sold under the insurer’s “Peace of Mind” proposition, which the company uses to frame its protection offerings around household financial resilience and the ability to cope with unexpected shocks.
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For the 2024-2027 period, Prudential Thailand is targeting at least 10% annual growth in new business profit, with the emphasis on organic development rather than mergers or acquisitions. The company aims to increase take-up in segments with relatively low coverage by offering products it describes as lower-priced options and by using customer data and analytics to refine benefit designs and service models. Prudential Thailand is currently among the five largest life insurers in the country by size. Bundit said the business is working toward a top-three position through growth in new business volumes, adjustments to its product portfolio, and continued build-out of its multi-channel distribution network.
Prudential Thailand is maintaining a cautious investment stance, reflecting its view of the current interest rate and inflation environment. The company is increasing allocations to fixed income instruments, particularly Thai government bonds and investment-grade corporate bonds, and is not adding to equity exposure at this stage. The insurer expects prevailing rates and inflation trends to support higher yields on long-term bonds and is using this backdrop to add to longer-duration fixed income holdings.
The objective is to secure more predictable cash flows from the portfolio and limit sensitivity to equity market movements. “We prioritise asset risk management over short-term returns, ensuring that our portfolio remains resilient under changing market conditions,” Bundit said. Equities continue to be treated as higher-risk holdings, and the company has no immediate plan to increase its allocation, he added. The investment approach is being aligned with the duration and characteristics of Prudential Thailand’s liabilities, including long-term policyholder obligations and product guarantees.
The Thai unit’s objectives follow the publication of Prudential plc’s full-year 2025 results, which showed double-digit growth in several metrics on a constant exchange rate basis. Group new business profit on a traditional embedded value (TEV) basis increased 12% to US$2,782 million in 2025, while new business margin rose to 42%. Operating free surplus generated from in-force insurance and asset management operations grew 15% to US$3,059 million. Earnings per share based on adjusted operating profit were up 12% to 101.4 cents, and adjusted operating profit before tax rose 5% to US$3,306 million.
Prudential declared a total dividend of 26.60 cents per share for 2025, an increase of 15%, and has indicated that it expects to return more than US$7 billion to shareholders between 2024 and 2027. That programme includes a completed US$2 billion share buyback and the initial public offering of ICICI Prudential Asset Management Company in 2025, an additional US$1.2 billion buyback launched in 2026, and an expected US$1.3 billion capital return in 2027. The group reported TEV equity of US$37.8 billion at the end of 2025, along with a free surplus ratio of 221% and a group-wide supervision shareholder surplus cover ratio of 262%.
