Thai Setakij Insurance Plc (TSI), a non-life insurer that had its stock branded with a "caution" (C) trading sign by the Stock Exchange of Thailand (SET), says it has fixed its financial problems, according to the head of the Office of Insurance Commission (OIC).
The insurance regulator talked to the company's executives about progress on removing the C symbol from its stock and found that the insurer had made improvements, though the OIC cannot detail TSI's plan because it is a listed company, said Suthiphon Thaveechaiyagarn, secretary-general of the OIC.
"We're monitoring the company closely," he said.
According to TSI's recent filing to the SET, the company stated that its shareholder's equity, a financial metric to assess a company's financial health, was below 50% of its paid-up capital at the end of June, resulting from price competition in the industry and frequent natural disasters.
An increase in distribution channels to reach more customers, diversifying to non-motor insurance and new products, improving workforce efficiency, and cutting costs are guidelines to address the financial problem, TSI said.
The company's capital adequacy ratio (CAR) is less than 140% but still higher than the legal requirement of 100%.
The C trading sign is posted on listed firms that are struggling with financial liquidity risks; or those that have not adhered to required listing regulations, such as having shareholders' equity lower than 50% of the company's paid-up capital; or those ordered to temporarily stop business operations or expansion because of bankruptcy.
Shares marked with the caution symbol cannot be traded on margin and will be restricted to trade with cash in order.
In another development, Mr Suthiphon said customers of Chao Phraya Insurance, shut down by the Finance Ministry after it failed to maintain the required CAR, can start claiming money from purchased insurance policies from next month.