Thai Insurance eyes Bt1 bn in sales, offers 'cash back' for good drivers

Economy February 26, 2014 00:00

By The Nation

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Thai Insurance Plc earned a total of Bt1.88 billion in premium income last year, an increase of nearly 19 per cent. The insurer targets more than Bt1 billion in sales revenue |this year under its "cash back" campaign to reward drivers with a three-year

Managing director Panita Tuchinda said the company’s premium income last year |grew by 18.9 per cent, exceed-ing the insurance industry’s average. Revenue from the |provision of insurance was Bt1.43 billion, up 28 per cent when combined with investment returns, resulting in an operating profit of Bt70.4 million, and net income after tax was Bt58.9 million, up 245 per cent over last year’s loss of Bt40.6 million.

Thai Insurance was also |able the maintain the financial reserve ratio required by the Office of the Insurance Commission, including capital adequacy ratio in relation |to its risk exposures, which exceeds the OIC’s minimum requirement to support the company’s business-expansion plans.

Last year’s operational results are considered satisfactory and fulfilled the firm’s targets. Hence the board of directors will seek shareholders’ approval on April 23 to pay dividends from net profit at Bt1.02 per share, totalling Bt23.97 billion.

This year, Thai Insurance plans to place more emphasis on personal insurance and small to medium-sized enterprises, as these two clients groups should help generate revenue on a steady basis.

Thai Insurance will reward with first-class auto insurance those clients who have had clean driving records (accident-free and no claims or not-at-fault claims) with the company for the past three years. Such clients will be entitled to a refund equivalent to half of their combined net premiums of the past three years.

Moreover, the firm will |strive to expand its distribution channels via telemarketing and bancassurance in cooperation with TMB Bank and Thai Insurance’s 16 branches nationwide.

For this year, Thai Insurance targets total premium income of at least Bt4 billion – 80 per cent from the individual or personal clients group and 20 per cent from the corporate and organisational clients group.