Insurer ups its capital
Thai Insurance has doubled its registered capital from Bt96 million to Bt200 million to prepare for intensifying competition after the planned free-trade agreement with the United States takes effect.
The mid-sized insurer's capital fund will rise from Bt300 million to Bt400 million, well above the minimum set by the Insurance Department.The department had asked all insurers to set aside at least 10 per cent of total premiums in their capital funds. It later revised this to require that each insurer set aside Bt300 in its capital fund by 2008. Thai Insurance's premiums totalled Bt726.8 million last year and this year it is aiming for Bt1.05 billion, or about 40-per-cent growth. The industry is forecast to expand between 10 and 12 per cent. In the first quarter, Thai Insurance's premiums totalled Bt218.9 million, up 42.5 per cent year on year. The firm's managing director, Panita Tuchinda, said the capital increase would be used for business expansion. The firm is also open to partnerships with both Thai and foreign companies, she said. "To benefit shareholders and customers, if there's any reasonable deal offered, we'd be open to negotiate." Due to the high volatility of the stock market, Panita said her company would underweight stocks and focus on debt instruments. "In the past few years, our return from equity investment has been about 9 per cent. But, this year we would like to be more conservative by focusing on the low risk and certain return from fixed-income tools," said Panita. Piyarat Setthasiriphaiboon, The Nation
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