|
|
| • EXCH RATES |
|
Baht/$ 33.87/93 (Bid/Ask)
|
GOLD |
14200
+350
|
|
FINANCIAL CRISIS
Regulators to request B10bn for bailouts
PHUSADEE ARUNMAS and CHAROEN KITTIKANYA
Regulators have pledged to set up a contingency fund to give additional peace of mind to consumers in case any local insurers encounter financial troubles.
''Supplementary measures are necessary. The insured remain worried about the impact from the US financial crisis although we [the OIC and the insurance industry] have insisted the Thai insurers are fully safe and unaffected by what's happening in the US and Europe,'' said Chantra Purnariksha, secretary-general of the Office of the Insurance Commission (OIC).
According to Mrs Chantra, as part of the emergency plan to limit the impact from the US financial crisis to be proposed soon to the Finance Ministry, the office will request 10 billion baht from the government to set up the fund.
Of the this total, nine billion baht would go to the life insurance industry and one billion to general insurers.
A similar fund, the policyholders' protection fund, is to be set up under the new Life and General Insurance Act, which requires insurers to set aside about 0.5% of premiums for it. But the fund has yet to be established, as the OIC and insurers are debating the issue.
Critics say the proposal to set up a contingency fund using taxpayers' money is unfair, as it is tantamount to supporting irresponsible executives of insurance firms.
Concerns about insurers' health have been widespread following the financial troubles of AIG, the world's biggest insurer. Local insurers have declared repeatedly they are financially strong and well-regulated.
Muang Thai Group yesterday repeated that its Muang Thai Life Assurance and SET-listed Muang Thai Insurance were totally insulated from the troubles of its European investor Fortis.
Fortis, through Fortis Insurance International NV, holds a 24.99% stake in Muang Thai Life Assurance and about 15% in Muang Thai Insurance. The majority shareholders of the two insurance firms are the Lamsam family and Kasikornbank (KBank).
''We want to repeat that Muang Thai Life and Muang Thai Insurance are not branches or subsidiaries of Fortis,'' said Sara Lamsam, president of Muang Thai Life Assurance.
Nualphan Lamsam, the president of Muang Thai Insurance, added that the two firms had no exposure to Fortis's stock or any investments in the Belgian-Dutch firm, which forged a joint venture with Muang Thai Group five years ago.
As of August this year, Muang Thai Life reported total assets of 54.61 billion baht, with policy reserves of 45.79 billion, and a capital fund of 6.83 billion baht, about 7.46 times higher than the requirement set by the OIC.
Muang Thai Insurance had assets of 6.79 billion baht as of June, with investment assets of 4.28 billion baht and capital fund of up to seven times the requirement.
Supar Phokachaipat, director and chief corporate affairs officer of Ayudhya Allianz C.P. Life (AACP), affirmed yesterday the joint-venture firm was also not affected by the US financial crisis, adding Allianz itself had no exposure to Lehman Brothers.
AACP, a Thai-German joint venture, as of June had assets worth 92 billion baht, with policy reserves of 75 billion baht and capital funds of four billion, 274% higher than the OIC's requirement.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Next
