Allianz Ayudhya diversifies risk through investments
July 26, 2014 00:00 By The Nation
Allianz Ayudhya Assurance will stress risk diversification, fixed-income assets of excellent credit quality and equity assets with good long-term prospects in line with the company's product design that is focused on providing long-term life and health pr
“Thailand has strong economic fundamentals. Consumer confidence is coming back and the investment environment is getting better. Foreign investors are regaining their confidence in the Thai market and capital flows are normalising after strong outflows earlier this year,” he said.
The Thai capital market has been developing very positively since the beginning of the year. The sentiment has significantly improved and market players bank on a stable development of Thai politics.
Certain risks from the international context remain, however. There are concerns that the European debt crisis might not be over and the economic development of the US or China might disappoint. Combined with internationally high equity-market valuations, a period of higher volatility is likely, which will also affect the Thai market.
Invested assets of Allianz Ayudhya amount to Bt117.4 billion, which is a new record in the history of the firm. The asset mix is focused on stable long-term returns.
The majority of its portfolio is invested in government and state-enterprise bonds. In the first quarter, Allianz Ayudhya’s investment income reached Bt1.4 billion.