Dhipaya Life Assurance, an associate company of SET-listed Dhipaya Insurance Plc (TIP), plans to launch an initial public offering (IPO) in the fourth quarter of next year.
The insurer will submit an IPO filing to the Securities and Exchange Commission and a listing filing to the Stock Exchange of Thailand (SET) by next year, said chief executive Nopporn Boonlapo.
Bualuang Securities is Dhipaya Life's financial adviser.
The Government Savings Bank (GSB) is the company's largest shareholder with a 21% stake, followed by Dhipaya Insurance at 20%, Panichewa Group at 15% and Thailand Prosperity Fund at 12%.
Mr Nopporn said the company aims for 8-10 billion baht in premiums next year, representing 0-5% growth from this year.
Dhipaya Life will maintain its focus selling pension and investment-related insurance as well as mortgage-reducing term assurance (MRTA) through the bancassurance channel as these products are subject to lower insurance policy reserves than endowment insurance products, he said.
"From the third quarter this year, the company has shifted focus from ordinary life insurance products through bancassurance and their premiums rose significantly. Strong sales offset declining premiums from endowment insurance," said Mr Nopporn.
Amid the low interest rate environment, the company must manage insurance premium growth to make a profit and prevent a negative impact on its capital adequacy ratio (CAR), he said.
At present, GSB and CIMB Thai Bank are Dhipaya Life's partners.
The company has no need to set aside additional capital requirements as its CAR is relatively high at 250%, he said.
"Our profit this year is likely to dip from last year because of the additional reserve requirement amid lower interest rates. Given the industry slowdown and low interest rates, high premiums are not a boon. We must have premium growth and generate profit," said Mr Nopporn.