Insurer sees 1st-year premium loss

However, the company succeeded in growing its gross premiums by 14 per cent to Bt20.75 billion last year thanks to its strong direct marketing channel, which has ranked No 1 in the industry for three straight years.
Its direct marketing business rose 22 per cent to Bt2.79 billion, while its agency channel, the biggest contributor, increased its revenue by 10 per cent to Bt13.52 billion.
The company hopes to achieve Bt23 billion in total premiums this year through all distribution channels, by counting on the agency channel as well as expanding its new distribution channel – direct marketing and direct response television (DRTV).
Bryan Smith, president and CEO, said first-year premiums last year reached only Bt4.45 billion due mainly to the flood crisis, while income was up 10 per cent for agency, 23 per cent for bancassurance and 22 per cent for direct marketing. The market’s growth was 7 per cent, 18 per cent and 20 per cent.
The company’s financial status is strong, with assets of Bt110.32 billion under management. Its claims and maturity benefits payments were up 12 per cent to 778,189 policyholders out of more than 1.4 million policyholders nationwide.
“We will move forward to strengthen all distribution channels especially agency, along with expanding DRTV,” Smith said.
Out of total premiums this year, Bt16 billion will come from agency, Bt4.7 billion from bancassurance and Bt3.3 billion from direct marketing.
The company will soon launch more products, step up incentives and training for its 14,000 agents so that they become more active in selling products, and add more term policies that fit with policyholders’ lifestyles and demands.
Although Allianz is based in Munich, the eurozone financial crisis has not had any effect on the firm’s operations.