Tokio Marine keeps faith in kingdom, vows support for Thai units
Despite the massive flooding in Thailand, Japan-based Tokio Marine Holding vowed to support its insurance subsidiaries in Thailand as it believes in the potential for growth of the life insurance business here.
The group is targeting revenue contribution from Thailand to account for 10 per cent of the group’s total revenue in the near future from only 1 per cent at present.
Hiroshi Endo, senior managing executive officer of Tokio Marine Holding, said yesterday that the group’s total assets value had reached Bt1.1 trillion, which was enough to support its two insurance businesses in Bangkok – Tokio Marine Life Insurance (Thailand) and Tokio Marine Sri Muang Insurance.
Endo said the group was ready to inject money into those subsidiaries in Thailand, especially the life insurance business. It aims to increase the number of its agents. The life insurance company’s registered capital is Bt882.4 million.
The life insurance market in Thailand still has room to grow. However, the revenue from Thailand generates only 1 per cent of the group’s total overseas revenue of Bt200 billion. Tokio Marine Life Insurance’s total premiums surged by 34 per cent to Bt1.9 billion last year, of which first-year premiums were Bt750 million and renewal premiums Bt1.16 billion.
Hiroshi Tateishi, president of company, said that the company aims to expand total premiums in 2012 to Bt2.35 billion, an increase of 23 per cent, which is higher than the expected market growth of 15.5 per cent.
The company targets total premiums of Bt2.35 billion against Bt1.91 billion last year.
He said the flood is expected to impact its sales in the first half this year but the rebound in businesses, together with the company’s promotional activities, could help drive sales in the second half. It believes the company can achieve 23 per cent growth in 2012, Tateishi added.
Sompote Keitkraival, senior executive vice president of the agency department, said the company plans to add nine branches to the current 12 and recruit 1,000 agents this year to add to the current 2,022.
He said the company needs to rely on first-year premium via the agency channel because the company had ended its bancassurance contract with CIMB Thai Bank.
Tateishi added that the company was in talks with five local banks for selling life-insurance products.
Somphot said the company expects the agency channel to generate first-year premiums of Bt600 million and renewal premiums of Bt640 million.
