TQM Corporation, the only SET-listed insurance broker, announced it will count on joint ventures and acquisitions this year as key drivers of its goal to achieve 50 billion baht in insurance premiums by 2026.
The firm said the joint ventures (JV) and merger and acquisitions (M&A) will contribute 15 billion baht to premium sales, while 35 billion baht will be through its broker businesses, said chief executive Napassanun Punnipa.
TQM aims to grow its total revenue by over 60% to 25 billion baht this year of which 17.25 billion baht will be from TQM's broker businesses, while the remainder will be generated through M&A and JV partners.
"The JV and M&A strategies will help us achieve half of our target faster than expected," Mrs Napassanun said.
The first acquisition deal is TQR, a new MAI-listed reinsurance broker which debuted on the exchange last week and is 44.3% owned by the Punnipa family.
She said the family will later sell its TQR shares to TQM. The deal is currently under the negotiation process and needs to be approved first by TQM's board of directors and shareholders.
TQM brokers will improve TQR's capability to grow in the large corporate segment.
There are currently two more deals in the negotiation process which are expected to be concluded by the first half of 2021.
She said the company currently holds 3.3 billion baht worth of cash available for the M&A and JV deals worth from 100 to 1,000 million baht, excluding its investment in Easy Lending which the company reported to the Stock Exchange of Thailand yesterday.
She said the company will focus its M&A strategy on its insurance brokerage business which is its expertise.
TQM acquired TJN Insurance in 2018 before expanding to Cambodia and Laos last year.
Unchalin Punnipa, TQM's president, said the company plans to penetrate the insurance market in neighbouring countries with an aim to become a regional leader of insurance brokers.
The firm aims to raise its net profit margin to be higher than last year.
In 2020, the company reported insurance premiums sold worth 15.02 billion baht, an increase of 15% from 2019.
It also recorded total revenue worth 3.14 billion baht or a rise of 12.17% from 2019, with net profit worth 702 million baht, which is the company's new record-high.
The company's shares closed yesterday on the SET at 122 baht, up 1 baht, in trade worth 175.9 million baht.