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Published on April 14, 2008

Managing director Montri Sang-uraiporn said negotiations with an interested US investor must be finalised soon. The deal will bring the company back to normal operations.

The company has been ordered by the Office of the Insurance Commission (OIC) to maintain its insurance fund as required by law and solve its cash-flow problem to ensure smooth operations.

"We hope negotiations will be finalised before the deadline," he said.

Montri explained that the shortfall of Bt100 million in the company's insurance fund was a result of the OIC undervaluing the company's assets.

The company has targeted premium growth of 10 per cent to Bt2.28 billion this year. New premiums are expected to grow 30 per cent to Bt650 million and renewal premiums 4 per cent to Bt1.63 billion. Renewal premiums in the first quarter grew 7.8 per cent to Bt354 million.

Six insurance companies have so far reported cash-flow problems.

Petchanet Pratruangkrai

The Nation