The country's second-largest life insurer earlier forecast the trend of interest-rate increases would have an impact on its single-premium business.

Last year it obtained only Bt760 million in such premiums, compared to Bt3.48 billion in 2005 and Bt2.07 billion in 2004 - years in which market interest rates were low.

The huge decline in sales of single-premium products dragged the insurer's overall financial performance down, although in spite of low consumer confidence that hit the industry last year. However, the insurer managed to receive Bt5.03 billion in new premiums, up from Bt4.08 billion in 2005.

The life-insurance industry struggled with almost flat growth in the first half of 2006 before eventually rebounding to growth of around 5-6 per cent at the end of the year.

Throughout the year, Thai Life paid Bt7.12 billion in benefits and dividends to policyholders following commitments under the terms and conditions in policies, while it paid out a total of Bt4.61 billion in 2005.

In the same year, the company paid out Bt4.07 billion in compensation following claims for death, accidents and daily medical expenses. Apirak Thaipattanagul, director and chief executive officer, said the firm expected the pressure of interest-rate increases to relax.

The company is optimistic about the country's economic growth, which will result in a positive sentiment towards domestic consumption.

This year the firm aims to sell traditional products, emphasising protection coverage rather than saving.

The company will also introduce an investment-linked policy to sophisticated groups of customers.

It will attempt to gain a greater market share through bancassurance and work-site marketing methods.