AACP targets Bt23 bn premiums for 2012 through new agents, innovations
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Ayudhya Allianz CP Life Insurance (AACP) is banking more on its agency channel by recruiting agents and launching products in a bid to lift its total premiums to Bt23 billion this year.
Last year, AACP posted total premiums of Bt20 billion.
In the first quarter, AACP’s gross premiums rose 15 per cent on year to Bt5.09 billion, of which first-year premiums accounted for Bt1.16 billion.
Bryan Smith, president and CEO, said yesterday that the agency channel remains the key driver of new business compared with other channels.
Of the Bt1.16 billion in new business in the first quarter, the agency channel contributed premiums of Bt563 million, up by 15 per cent year on year, followed by the direct sales channel with Bt250 million, up by 10 per cent.
AACP is the industry leader in direct sales. It ended the first quarter with assets of Bt110 billion, increasing by 6 per cent from the end of last year.
Asset growth might not be impressive this year because the company faces policies maturing worth Bt12 billion. Assets at year-end are projected at Bt120 billion.
AACP plans to introduce innovative products and improve existing policies to match up with new customer requirements. It will approach customers with maturing policies about buying new policies.
It would continue to grow its agency force, aiming for 3,570 agents this year against 3,500 currently.
It plans to penetrate the provincial market over the next two years with the goal of 60 per cent of its business derived upcountry.
Despite the first-quarter premium growth, the company would consider revising up its premiums target after the third quarter.
“In case premiums in the first nine months show they’re exceeding the target, we might revise upward the target of Bt23 billion,” Smith said.
He declined to talk about the new shareholding structure after two partners, Bank of Ayudhya and Charoen Pokphand, sold their stakes in AACP to Sri Ayudhya Capital.
