Tokio Marine Insurance Reveals 2.1% Premium Growth in 2015 Also strengthens its Business with diversification into a business channel

Tuesday 29 March 2016 15:42
Tokio Marine Insurance (Thailand) PLC., reveals a 2015 total gross written premium (GWP) of 7,648 million Baht, showing a 2.1% increase over the year 2014, with a net profit of 584 million Baht or a 40.3% increase. Tokio Marine's business success was mainly the result of diversification into a business channel, together with a new pricing scheme and tight expense control. The Company will also continue its CSR activities with its flagship activity being related to drivers and victims of road accidents under the Company's vision "To be a Good Company", the ultimate goal of the Tokio Marine Insurance Group.

Mr. Shinkichi Miki, President of Tokio Marine Insurance (Thailand) PCL., stated that, in 2015, the Company had a total GWP of 7,648 million Baht or a 2.1% increase and a net profit of 584 million Baht or a 40.3% increase over the year 2014. Similar to the overall Thai insurance market, the Company felt the impact of the continuous drop in new car sales, in order to overcome the market situation, the Company implemented several initiatives to enhance its strength and to diversify into a business channel. The business performance divided into each class of insurance was as follows: Fire Insurance GWP in the amount of 1,965 million Baht, an 8.8% increase; Marine Insurance GWP in the amount of 842 million Baht, a 2.7 % increase; Motor Insurance GWP in the amount of 3,474 million Baht, a 2.7% decrease; and, finally, Miscellaneous Insurance with a GWP in the amount of 1,367 million Baht, a 5.5 % increase, all compared to the year 2014.

One of the initiatives was to provide insurance for Infrastructure business. The Company provided a large capacity for Infrastructure business with a latest credit rating of A- (Stable) from S&P representing one of the highest credit ratings for companies operating in Thailand, and internationally recognized insurance underwriting expertise by joining hands with an international broker. The Company has achieved its target GWP of 100 million Baht from Infrastructure business.

In 2015, The Company has established Mekong Business unit and expanded its business area into the Greater Mekong Sub-region countries which consist of Myanmar, Cambodia and Laos. The Company is also focusing Infrastructure business in this Sub-region and has responded to the strong demand for Marine insurance for cross border transportation. The company has achieved the premium target from Mekong Business which more than 3 times than that of 2014.

In 2016, the business performance for the first 2 months of the year (January - February), has realized a GWP of 1,329 million Baht, representing a 5.1% decrease on the same period in 2015. The Company intends to expand its business by creating a greater variety of insurance products to meet customer demand to ensure sound and solid business security.

Mr. Paichayon Sutheerapongpun, Executive Vice President (Dealer & Finance Business & Branch Operation Marketing) stated that the Company has implemented new pricing scheme for motor renewal policy which is intended to give greater rewards to good drivers and this has been well accepted by customers. The Company has also established a dedicated team to support the motor insurance renewal business process to take better care of renewal customers. These initiatives have improved the Company's renewal ratio by 8.8 % compared with that of 2014.

Furthermore, the Company has launched a new project which is intended to establish the new model of insurance agent which has proved successful in Japan. Participants in this project will receive intensive training, both theoretical and practical, from professionals during an eight month course. In 2016, the Company plans to invite 100 insurance agents from all over the country to participate in this project, with the aim of creating a wider professional insurance agents channel to provide good insurance support to customers.

Mr. Shinkichi Miki further added that, other than the business development, the Company is also focusing on creating Tokio Marine brand awareness. The Company believes that a widely recognized brand will make customers select Tokio Marine Insurance with ease.

In 2016, Tokio Marine will enhance its supports of CSR activities in order to show its gratitude to Thai society and will focus on activities relating to drivers and the victims of road accidents; by giving its full support, for the 11th year, to the campaign to reduce road accidents through the "don't Drive Drunk Foundation"; by lending its support for six consecutive years to the Zero Death Project of General Prem Tinsulanonda Statesman Foundation; by providing 36 scholarships for road accident victims for over 10 years; by supporting the National Council on Social Welfare of Thailand (NCSWT) in providing 90 scholars for 12 years; by the 10 consecutive years support of the Tokio Marine Preserve Water Preserve Forest Project. CSR activities are seen as part of the Company's business activities under the Tokio Marine Insurance vision "To be a Good Company", which is the Company's ultimate goal.