The automobile-insurance business is not as profitable as before because the market has plunged into a price war, he said.

The medium-size non-life insurer suffered a loss ratio of 65 per cent last year.

"We'll gradually cut our motor policies with high risk of claims. We'll be more selective towards insurance brokers as well as customers to help contain the loss ratio to below 60 per cent," Somneuk said.

The firm aims to reduce its reliance on motor insurance compared to non-motor insurance to 80:20 this year, 75:25 next year and 70:30 in three years.

Assets Insurance, one of the few major jewellery insurers, targets Bt900 million in premiums this year, compared to Bt800 million last year and Bt1 billion in 2005.

Executive vice chairman Sasamon Sanguangsin said the firm was considering an offer from a European insurance company to create an innovative product for it to sell.

However, Assets Insurance will remain as a pure Thai-owned insurer, as the alliance with other party will be only in product synergy, he said.

Beauty Gems, a top-three jewellery manufacturer and exporter, took over Assets Insurance four years ago, injecting Bt300 million in capital. In 2005, the firm increased its capital by another Bt100 million to a total of Bt400 million.

Separately, Krungthai-AXA Life Insurance said it hoped to earn Bt10 billion in premiums by 2012.

Chief marketing officer Poramasiri Manolamai said the company expected to generate 40 per cent of premiums through Krung Thai Bank's branch network and 60 per cent from its sales force. It hopes that within a few years the mix will be equal.

Its first-year premiums last year reached Bt1.3 billion. They are projected to hit Bt2 billion this year and then continue to grow by 50-60 per cent each year.

Piyarat Setthasiriphaiboon

The Nation