Thai Insurance Plc (TIC) is putting into place a new business model, following its amalgamation with Southeast Group (SEG), controlled by tycoon Charoen Sirivadhanabhakdi.
The insurer has posted a net profit of THB69 million (US$2.24 million) in the first half of 2019, a turnaround from a loss of about THB75 million (US$2.43 million) in the same period last year, the Bangkok Post reported.
“Our customer base is expected to grow to 600,000 (from 300,000) this year,” said TIC chairman Somchai Sajjapong. “Net profit is expected to continue growing as profitability has improved after business restructuring with Southeast Life Insurance Plc (SELIC).”
TIC has set a target of total premiums of THB2.3 billion (US$74.5 million) for this year. On July 31, TIC was delisted from the Stock Exchange of Thailand and SEG, which now holds 93% of TIC shares, was listed in its place.
According to TIC, the amalgamation will help it diversify its revenue sources from general insurance to life insurance. Somchai noted that that the company aims to receive more quality insurance premiums, especially in the motor segment, by adjusting premiums according to relevant risks.
One example given was placing additional insurance premiums on trucks and towing heads, based on their risk profile. The insurer also plans to increase its portfolio of non-motor insurance, which is currently at 30%, to 40%.
These adjustments will help lower the overall loss ratio from the current 65% to 60%, and boost profitability, Somchai said.
