Ocean Life Insurance is exploring investment in real estate to gain higher returns matching its promises to policyholders amid the low-rate environment.
The insurer is mulling acquiring two land plots in Bangkok, said president Nusara Assakul Banyatpiyaphod.
Ocean Life is conducting a feasibility study about developing property for the elderly valued at more than 500 million baht.
The company is in no hurry to acquire land, as it has its own land bank, Mrs Nusara said.
Some insurers in Japan are venturing into the nursing home business, she said.
"Low interest rates are present across the globe," she said. "We have adjusted our investment portfolio and products, focusing on health and protection."
Ocean Life is not alone in seeking property investment opportunities. Muang Thai Life Assurance (MTL) recently added property to its investment portfolio, splurging 3.8 billion baht to construct an office building aiming for higher returns to match long-term insurance's liability obligations amid the low-rate environment.
"We also specialise in mortgage lending," Mrs Nusara said. "Our expertise offers a better yield than bond investment."
Ocean Life delivered 6.2% growth in new business premiums to 2.3 billion baht for the first nine months of 2019. Total premiums received amounted to 10.6 billion baht for the period, up 9% from a year earlier.
Insurance agents were the main contributor to total premiums received, making up 87%.
For the first nine months, the company reported investment revenue of 3.32 billion baht and a net profit of 950 million baht.
"We plan to play an aggressive role in the digital channel and investment by adopting digital technology to serve fully integrated services with cybersecurity and prepare for digital insurance in the near future," Mrs Nusara said.
Next year the company plans to launch social media through several platforms, including Line, and it will launch the Ocean Club app to motivate insurance holders to use the digital channel.