Deves targets 10% growth in premiums
Deves Insurance Plc is targeting 10-per-cent growth in insurance premiums to Bt4 billion next year by balancing its personal line and industrial businesses.
Products will be developed for various kinds of protection including personal accident, health, home and car. The company has developed an information technology system to streamline operations and increase revenue from motor insurance by focusing on private cars and pickup trucks weighing up to four tonnes.
It will manage its capital adequacy ratio to reach 300 per cent next year from 227 per cent this year. That will ensure its strong financial status. The company will select more customers and re-insurers of at least “A-” grade credit and accelerate the settling of claims from the devastating flood last year and fire at CentralWorld the year before that.
President Chatchai Chinvetkitvanit said last week that the flood claims are expected to be cleared by the middle of next year while the Civil Court would rule on the CentralWorld fire case by the second quarter of next year.
The flood claims will drag into 2014, but the Insurance Commission would consider extending the flexible conditions for insurance companies facing financial problems from claim payments for another year after they expire in March, he said.
Deves expects to earn Bt80 million on total premiums of Bt3.6 billion this year, up by 20 per cent from total premiums last year. Big customers will account for 55 per cent of total premiums and small customers the remainder.
In the first nine months of this year, the company’s total premiums surged by 27 per cent to Bt2.76 billion. Its net profit reached Bt98.8 million or Bt1.27 per share. After deducting re-insurance premiums of Bt1.64 billion, it recorded net insurance premiums of Bt1.12 billion.
Fire insurance accounted for Bt174.26 million, up by Bt2.05 million; marine insurance and transportation insurance for Bt65.28 million, down by 14.57 per cent; motor insurance for Bt703.92 million, down by Bt7.74 million or 1.1 per cent; and miscellaneous insurance for Bt1.82 billion, up by Bt608.13 million or 50.1 per cent.
The launch of the Asean Economic Community will expand the insurance market. Deves has improved its operations to be ready for the regional competition by developing both motor and non-motor insurance to provide comprehensive services to customers.
As for the city car category, the company will focus on selling through its direct channels and doubling survey coverage by its employees to 60 per cent.
