Muang Thai in SME bid
Muang Thai Insurance plans to target small and medium-sized enterprises (SMEs) and expats, as slowing growth in car sales has made it difficult to increase its auto business.
New director and executive vice president Puntrika Baingern, who was formerly managing director of Kasikornbank unit K-Factoring, is to supervise financial management and penetrate the SME and expat markets.Muang Thai, the leader in directors' and officers' liability coverage, have signed an agreement with one of the world's leading insurers to develop trade-credit policies together. Belgium's Fortis, which owns 40 per cent of the insurer, will help expand its customer base, especially among expats. "We haven't set a target yet, because it's just the beginning, but we forecast the opportunity to grow through these channels," Puntrika said. Besides cross-selling with Kasikornbank's customer base, Muang Thai also plans to do more cross-selling with its own policyholders. Sales of new cars in January and February dropped 24 per cent and 18 per cent, respectively, and should remain sluggish for the rest of the year, said president Nualphan Lamsam. "It will be a very tough year, not only for us, but also for the entire industry." The insurer's claims ratio is 53 per cent. Its claims from non-vehicle insurance rose last year from 42 per cent to 52 per cent, because of huge flooding. Muang Thai predicts its premiums will increase 12 per cent to Bt2.04 billion this year, equal to the industry's projected growth. Last year, it earned Bt152.55 before tax on total premiums of Bt1.89 billion. It ranked 18th in the industry, with 1.84 per cent of the market. Although the Stock Exchange of Thailand Index plunged 4.99 per cent from 713.73 in 2005 to 679.84 at the end of last year, Muang Thai managed a return of 7.45 per cent, well above the projection of 5.94 per cent. Piyarat Setthasiriphaiboon The Nation
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