Tokio Marine Insurance showed profit increase of 11.8% for 1Q2015
Tokio Marine Insurance showed profit increase of 11.8% for 1Q2015.
And also challenged growth by launching new pricing scheme of Motor Insurance and support Infrastructure business aggressively
Tokio Marine Insurance (Thailand) PCL. announced its direct written premium income of over 7,412 million baht for year 2014, 7.74% decrease in comparison to year 2013, YOY. The net profit is at 416 million baht, or 37.6% increase, YOY. Tokio Marine also showed its direct written premium income for the 1st quarter of year 2015 of 1,948 million baht, decrease of 7.4% YOY. The net profit is at 125 million baht, or 11.8% increase YOY.
Mr. Shinkichi Miki, President of Tokio Marine Insurance (Thailand) PCL. stated that the reduction of new car sales in Thailand has impacted on the Motor insurance premium significantly and faced negative growth in 2014, the total direct written premium was at 7,412 million baht, a decrease of 7.7%, mainly coming from the decrease of 17.6% in Motor insurance premium at 3,567 million baht.
This market situation remains same as 2014 and in 1st quarter of 2015, the company received direct written premium of 1,948 million baht, a decrease of 7.4%, year over year.
This year the company has been penetrating into infrastructure business sector more by taking advantage of sophisticated underwriting skill and capacity, its strong credit rating at A- by S&P to support the significant amount of investment into Infrastructure.
The company has revised the pricing for renewal of Motor insurance which better reflected the loss experience of each client in order to reward the good driver. This new pricing has been well accepted from clients and our renewal ratio has improved by 7%. This initiative has enabled the company business to achieve its business plan and moving forward to becoming top 3 of the best and most trusted insurance company in Thailand.
Mr. Korakrit Khumruangrit, Chief Financial Officer and Director of Tokio Marine Insurance (Thailand) PCL. stated that direct written premium for the 4th quarter of year 2014 was at 1,645 million baht, decreased by 3.0%, year over year, consist of Fire insurance premium at 5.8 million baht, decreased by 19.6%, Marine insurance premium at 194 million baht, decreased by 7.4%, Motor insurance premium at 895 million baht, decreased by 13.9%, and finally, direct written premium of 549 million baht for Miscellaneous insurance which increased by 25.2%. During the months of January – December 2014, the total value of direct written premium was at 7,412 million baht, decreased by 7.7%, consist of Fire insurance premium at 28.3 million baht, with 20.9% decrease, Marine insurance premium at 794 million baht, with 8.6% decrease, Motor insurance premium at 3,567 million baht, with 17.6% decrease, and lastly, Miscellaneous insurance premium at 3,021 million baht, with 8.0% increase. In year 2014, total net profit was at 416 million baht, an increase of 37.6% year over year, as a result of good loss ratio and well controlled expenditure.
For the business operation of the 1st quarter of 2015, the company received direct written premium of 1,948 million baht, decreased by 7.4%, year over year, with 43.0% decrease in Fire insurance, 0.6% increase in Marine insurance, 21.2% decrease in Motor insurance, and lastly, 6.2% increase in Miscellaneous insurance. The total net profit for the 1st quarter of 2015 was at 125 million baht, increased by 11.8%, year over year. The planned target for this year’s direct written premium is at 8.2 billion baht, or over 10.8% growth, year over year.
Mr. Paichayon Sutheerapongpun, Executive Vice President (Dealer & Finance Business & Branch Operation Marketing) stated that during the business operation of year 2014, the company delivered auto repair works to the dealers/trade partners at 98.9%. Such performance of Tokio Marine Insurance has created customer’s confidence in quality of auto repair works as well as positive business relationship with the company trade partners.
In 2015, the company has revised the insurance premium rate scheme for Motor renewal customers to reflect the result of loss of each client more directly and providing competitive premium rate for the good drivers. These initiatives aim to help boosts competitive advantage for the agent and broker channel in the market, also to increase market share for the company. Moreover, the company also appointed a highly qualified team of professionals to take care of the renewal business services to ensure customer’s confidence. The company has received positive feedback from clients and the proportion of renewal business for Dealer & Finance channel was at 40% during the 1st quarter, an increase of 7% year over year. The company also believes that these strategies will help the company move forward strongly and reach the planned target.
Mr. Korakrit Khumruangrit, added further that other than the business growth strategy, one of the most important mission of the company is to contribute to Thai society through the CSR activities, including, the 10th year ongoing support of campaign to reduce road accident through the “Don’t Drive Drunk Foundation”, and supporting the Zero Death Project of General Prem Tinsulanonda The Statesman Foundation for the 5 years, supporting the National Council on Social Welfare of Thailand (NCSWT) in providing 100 scholarships for 11 years, 9 consecutive years of Love Tokio Marine Preserve Water Preserve Forest Project which we invite our customers and the public to join the competition and win an opportunity to join us in the trip to do this good deeds at Nan province.
Recently, the management team and all staff of Tokio Marine Insurance has donated money to help the Nepal’s earthquake victims which the company also contributed the amount equivalent to the total amount collected from the donation from the management team and staff member. The money has been delivered to the Thai Red Cross to be sent to the people of Nepal accordingly.
All of the aforementioned activities are part of Tokio Marine Insurance business operations under the vision to be “Good Company”, as the company’s ultimate goal.
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