SET-listed Thaire Insurance, a local reinsurer, is maintaining its target of 10% annual revenue growth over the next three years, driven by growing public concern over health protection during the coronavirus pandemic.
The company reported a net insurance premium of 2 billion baht in the first half, a 10% year-on-year increase. Net profit was 87 million baht, a 40% year-on-year rise, or 313% against the previous quarter.
The firm attributes the gains to increases in reinsuring profit margins and return on investment, as well as a decline in long-term business expense.
Thaire chief executive Oran Vongsurapichet said the growth was driven by increased concern over health protection, which contributed 60% to the company's health reinsurance business net premium, compared with 51-52% last year.
The company has set a return-on-investment target at 4-5% and a return-on-equity (ROE) target at 5-7% this year.
"ROE over the next three years is targeted to achieve 10%, driven by growing service revenue from our subsidiaries that we plan to grow by 15% annually over the next three years," Mr Oran said.
The company has four wholly owned subsidiaries: Services, Thaire Innovation, Thaire Actuarial Consulting and EMCS Thai.
Mr Oran said the subsidiaries' strategy to grow will be to focus on innovation.
Thaire Innovation is in talks with partners about bringing a Chinese electronic Know Your Customer platform to Thailand to serve local insurance companies. The platform will employ artificial intelligence to back up recorded videos.
Mr Oran said the service will likely be available in its first phase and claims it can help insurance firms uphold Covid-era social distancing guidelines by processing claims remotely.
"There is demand from both life and non-life insurance, especially small and medium-sized firms, as investment in this platform could be more expensive than outsourcing the service," he said.
Thaire Acturial Consulting is also considering an opportunity to buy major licences for actuarial systems from foreign firms to sell to local insurers.
"The Thai insurance business will implement IFRS 17, an international financial reporting standard, over the next few years, and demand for actuarial will be growing at that time," Mr Oran said.