TIC eyes B2.3bn in premiums
Thai Insurance Plc (TIC) has set a target for total premiums of 2.3 billion baht this year, driven by a new business model after being amalgamated with Southeast Group (SEG), a holding company controlled by tycoon Charoen Sirivadhanabhakdi.
For the first half, the company reported a net profit of 69 million baht, a turnaround from a net loss of 70-80 million baht in the corresponding period last year, with total premiums received of 1.25 billion from a customer base of 300,000.
"Our customer base is expected to grow to 600,000 this year," said chairman Somchai Sajjapong. "Net profit is expected to continue growing as profitability has improved after business restructuring with Southeast Life Insurance Plc (SELIC)."
SEG is a holding company controlling assets of SELIC and other insurance companies.
Under the backdoor listing deal struck last year, SEG arranged a conditional voluntary tender offer for TIC's shares as an alternative for those wanting to exit.
Meanwhile, a holding company, Thai Group Holdings Plc, allocated 730 million shares at a price of 34.24 baht each, worth 25 billion baht in total, to SEG in return for the group's assets and liabilities.
TIC has now been de-listed from the Stock Exchange of Thailand, with the bourse subsequently granting the listing of SEG on July 31, 2019.
SEG holds 93% of TIC shares after the tender offer.
Earlier, TIC expected the amalgamation to help diversify sources of revenue from non-life insurance to life insurance.
Mr Somchai said the company is still conducting business that doesn't overlap with SELIC's. It has restructured its business model in terms of insurance claimants, management processes and operating cost reduction.
Under the model, the company plans to prepare for Thailand's aged society and spearhead digital technology adoption, since digitisation can help expand the customer base in every segment, Mr Somchai said.
The company also aims to receive more quality insurance premiums, especially for the auto insurance business, through adjustments to insurance premiums according to relevant risks, he said.
For example, trucks and towing heads will have additional insurance premiums based on their risks.
The system will help lower the overall loss ratio to 60% from the current 65% and increase profitability, Mr Somchai said.
TIC plans to increase the portion of non-motor insurance to 40% from the current 30%.
The company's existing capital base is sufficient for business expansion over the next 3-5 years, Mr Somchai said.