The yield on the 30-year US government bond has surged above 5.2%, marking a new high for the year and the highest level in nearly 20 years. The 10-year bond yield has also climbed to a range of 4.60% to 4.80%, up from around 3.80% to 3.90% at the start of the year. This rise directly benefits leading insurance companies on the Stock Exchange of Thailand, namely Bangkok Life Assurance and Thai Life Insurance, as both firms can invest new premiums and maturing funds into higher-yielding bonds. Moreover, under the TFRS 17 standard, a higher discount rate reduces the present value of policy liabilities, easing insurance reserve burdens and supporting net profits.
Bangkok Life Assurance Public Company LimitedRising 30-year bond yields increase investment returns on new premiums and reduce reserve burdens under TFRS 17, boosting profits.
Thai Life Insurance PCLHigher bond yields allow Thai Life Insurance to invest in higher-yielding bonds and lower policy liabilities, supporting net profits.