Online sales, new partners buoy Cigna
Cigna Insurance Thailand expects annualised new premiums (ANP) this year to expand by 20 per cent to Bt1.6 billion after it approaches new partners and expands its online marketing channel.
Total revenue is expected to increase by nearly 40 per cent to Bt1.78 billion from last year.
Gary Wayne Denson, chief executive officer and country manager, said Cigna this year would focus on younger clients who are willing to spend time researching options before making the decision to buy insurance. The behaviour of younger customers matches up with the strategy to focus on online marketing, as the company has seen the sharp growth of social media in Thailand.
“We target sales of Bt20 million from this channel, which are expected to improve gradually in line with the growth of social media,” he said.
The online channel will support Cigna’s rebranding. The company yesterday launched a new logo reflecting the rebranding of Cigna Group in the United States.
The expected growth of premiums this year will also come from four new partners in addition to the existing 16.
The new partners should help boost premiums by 30 per cent, so the company believes total premiums this year will reach Bt1.6 billion.
Cigna Insurance recorded 2011 revenue of Bt1.27 billion, up by 80 per cent from 2010 thanks to annualised new premiums. ANP was Bt1.34 billion, a 35-per-cent jump from 2010’s Bt994 million, giving Cigna Thailand one of the highest growth rates in health, life and accident insurance operations of Cigna International in the Asia-Pacific region. The company had net written premiums (NWP) in 2011 of Bt1.29 billion, an 80-per-cent increase from 2010.
“Thanks to the aforementioned sales and revenues leap, according to Cigna’s internal US GAAP [generally accepted accounting principles] report, the company recognised a profit of Bt25 million for the first time since establishment in Thailand,” Denson said.
“In terms of this industry, this is significant evidence of progress. On the other hand, according to the business report prepared for the Office of the Insurance Commission [OIC], which employed another accounting method, Cigna reduced its loss from Bt331 million in 2010 to a loss of Bt25 million in 2011,” he said.
Based on the accounting-principles report to the OIC, the company expects to turn around in 2012 from a loss of Bt25 million, projecting profit of Bt36 million based on the GAAP report.
Denson noted that the company planned to add tourism insurance to its portfolio in the third quarter of this year after the parent company purchased a UK-based insurance firm with expertise in that segment.
