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German insurance giant Allianz confirmed yesterday that it was the lead insurer of the AirAsia jet that disappeared en route from Indonesia to Singapore with 162 people on board. 

“We can confirm that Allianz Global Corporate and Specialty UK is the lead reinsurer for AirAsia, for aviation hull and liability insurance,” Allianz said in a statement. 

Multinational teams searched for any sign of the Airbus A320-200 jet more than a day after Flight 8501 disappeared over the Java Sea.

The plane lost contact en route from Surabaya in East Java to Singapore on Sunday after the crew requested a change of flight plan because of stormy weather, in the third crisis for a Malaysian carrier this year. “It is much too early to comment on reports of this incident at this stage, except to say that our thoughts and prayers are with all those affected by this missing flight,” Allianz said.

“We stand by to support our client as fully and quickly as possible, working in conjunction with the insurance broker and our co-reinsurers.”

The latest disappearance comes at the end of a disastrous year for Malaysian aviation.

Malaysia Airlines Flight 370 disappeared while flying from Kuala Lumpur to Beijing in March with 239 passengers and crew, and in July flight MH17 was shot down over troubled Ukraine, killing all 298 on board. – AFP 

 

No capital increase

The Quality Houses Hotel and Residence Freehold and Leasehold Property Fund (QHHR) has cancelled its plan to increase capital, citing unfavourable market conditions, according to Land and Houses Fund Management.

QHHR’s investment committee last year passed resolutions approving an increase in the fund’s capital in an amount not exceeding Bt550 million from the existing Bt3.36 billion through the issuance of about 45 million to 69 million additional investment units.

The fund manager yesterday reported to the Stock Exchange of Thailand that one year after gaining approval from a meeting of unit holders, it was impossible to make additional investments in the fund because of unfavourable market conditions. Therefore, the fund would not increase its capital.

 

Insurance assessment

The property and casualty (P&C) and life insurance sectors in Thailand have intermediate risk as measured by Standard & Poor’s Ratings Services’ “Insurance Industry and Country Risk Assessment” released yesterday. Its assessments reflect its view of moderate country risk, based on Thailand’s economic risk, political risk, financial-system risk, payment culture, and rule of law. It considers industry risk to be intermediate for the P&C and life insurance sectors.

Thailand’s insurance sectors benefit from the country’s diversified and resilient economy. However, the country’s income level is low, and political uncertainties remain. S&P says its assessment of industry risk for Thailand’s life insurance sector is based on its evaluation of five industry-related factors. The rating agency sees market growth prospects and profitability (as measured by return on equity) as positive; product risk as negative; barriers to entry as neutral; and the institutional framework as moderately strong. For the P&C insurance sector, it sees market growth prospects as positive; profitability, product risk, and barriers to entry as neutral; and institutional framework as moderately strong.