By THE NATION
Net profit was Bt122.5 million, a 29.5 per cent increase compared to the same period last year, attributed to an increase in sales and interest income, particularly non-life and car insurance premiums.
Also contributing to the jump was the firm’s Big Data-AI project, that has helped the group better understand customer needs as it promoted a premium sales target for the year of Bt12.790 billion, said Dr Unchalin Punnipa, the Board chairman for TQM Corporation Public Co Ltd.
Statistically, the Office of Insurance Commission (OIC) indicated that for the latest quarter 59 per cent of insurance premiums were sold through brokers, and anticipated that in 2019 non-life insurance premiums will grow by 4-5 per cent compared to the Bt231.990 billion achieved in 2018, as well as 5.7 per cent for car insurance growth compared to Bt136.188 billion in 2018.
The aftersales services of companies also played a big role in retaining customers, with a 70 per cent renewal rate.
The service income for the second quarter of 2019 was Bt664.2 million, a Bt69 million increase or 11.6 per cent bump over the Bt595.2 million in income in the same quarter last year. Cost and service expenses were Bt345.8 million, 50.5 per cent of total revenue, compared to Bt297.3 million in the same quarter of last year.
The increase was clearly due to the number of sales staff, which were prepared to support the market expansion, according to a release by the firm on Wednesday. The gross profit margin was Bt318.5 million, or 47.9 per cent compared to Bt297.9 million in the same quarter last year, or 50 per cent. Net profit amounted to Bt122.5 million or a 17.9 per cent increase compared to the same period last year, The firm attributed that to increased sales and interest income, as well as quality management and effective cost control.
Unchalin added: “For the operation trend for the rest of the year 2019, the company can bring the strengths of Big Data and AI to the business. They can be a tool for super analysis to enable us to better know our customers. The company is also planning to partner more with new insurance companies and alliances for developing new products for a targeted group of customers based on current behaviours. We will keep going with our Financial Broker project, and Insurance Shop projects. All of these will significantly support our 12,790 premium sales goal for 2019.”
As it is the company dividend policy to pay not less than 50 per cent, the board has approved an interim cash dividend from the operating results for January 1, 2019 to June 30, 2019 of Bt0.65 per share to 300 million outstanding shares for a total amount of Bt195 billion.