Thai Life denies offer of 20% of shares to foreign players
Thai Life Insurance yesterday denied reports that it will offer 20 per cent of its shares to foreign investors to strengthen its competitiveness ahead of the Asean Economic Community taking effect in 2015.
Duangduen Kongkasawad, director of the company, said shareholders had not made any decision to float shares to foreign investors yet. However, it has hired a consultant to study the feasibility of investing in the region as a way to cope with tougher competition in the near future.
The company is controlled by the Chaiyawan business family, which has strong financial |status.
Thai Life Insurance is the |second-biggest life insurer operating in Thailand and the biggest Thai-owned one. It reported |that its insurance fund was |356 per cent of the risk-based |capital (RBC) in the third quarter, compared with the Office of |the Insurance Commission’s |standard requirement of 125 |per cent. Although the OIC rate will be increased to 140 per cent next year, Thai Life’s fund is still strong.
“Our financial support is strong enough that there is no need for us to raise funds by offering our shares to foreign investors,” Duangduen said.
Previously, the company |raised its registered capital from Bt9.5 billion to Bt10 billion to strengthen not only its financial status but also to compete with other leading life insurers in the region.
