Life insurance stocks gain in second half; analysts pick TLI and BLA as top plays on rising bond yields

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Summary · why it matters

Analysts expect third-quarter 2026 earnings for life insurance stocks to grow strongly both quarter on quarter and year on year, with the fourth-quarter 2026 trend set to keep expanding on the back of seasonal premium momentum and interest income recognised from bond investments. Arthit Chansawang, Director of Investment Strategy at Krungsri Securities, said that although elevated government bond yields dampen the appeal of financial sector stocks, they are directly beneficial to life insurers because they support returns on invested capital. Meanwhile, Trin Sittisawat, Assistant Director of Securities Research at Yuan Ta Securities (Thailand), said lower health insurance claim rates, the use of co-payment conditions for medical treatment, and stricter approval of inpatient claims are helping cut expenses, while companies can raise premiums in line with medical inflation. Analysts recommend buying shares of Thai Life Insurance, or TLI, with a 2027 fundamental target price of 14.30 baht and an expected full-year dividend yield of about 6.8%, after the company recently became the first to switch to paying dividends twice a year. For Bangkok Life Assurance, or BLA, analysts at Bualuang Securities recommend Outperform with a target price of 29 baht, based on a mid-2027 price-to-book value of 0.8 times, while the market expects BLA's dividend yield at 4%. Negative factors to watch are measures to control claim expenses and risk screening, as well as the direction of policy interest rates, which could affect reinvestment in the future.

Impact on assets 3

Financials▲
Thai Life Insurance PCL
TLI
▲ PositiveCapitalrelevance

Analysts recommend buying TLI with a 14.30 baht target price and ~6.8% dividend yield after it became first to pay dividends twice a year

Off-coverage companies 1

BBL Asset Management Company Limited (Bualuang Asset Management)i
Private± Mixedrelevance