We aim to be the most preferred non-life insurer in Thailand

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The Company’s Direct Premium Growth Rate Compared to the Market over the Past 3 Years (Baht : Million) 2009 2008 2007 (Preliminary) (Before Improvement) (Before Improvement) Bangkok Insurance Public Company Limited Premium Written 7,830.6 6,856.3 6,727.5 Growth Rate (%) 14.2 1.9 2.5 Non-Life Insurance Market Premium Written 109,845.4 106,238.5 100,815.7 Growth Rate (%) 3.4 5.4 5.8 Note : Data in 2008 and 2009 is OIC’s preliminary data as at February 12, 2010. The Company’s Market Share over the Past 3 Years Types of Insurance Order 2009 Order 2008 Order 2007 % (Preliminary) % % (Before Improvement) (Before Improvement) Fire 1 13.9 1 12.3 1 12.2 Marine 3 8.0 3 7.5 3 7.6 Motor 5 4.9 5 4.6 3 5.4 Miscellaneous 2 9.9 3 8.7 3 8.0 Total 3 7.1 3 6.5 3 6.7 Note : Data in 2008 and 2009 is OIC’s preliminary data as at February 12, 2010. Industry Outlook and Competition in 2010 Owing to the gradual economic recovery in late 2009, it is anticipated that both the private and government sectors’ spending and investment based on the government’s investment plans under the Thai Khemkhaeng stimulus package (2010-2012), coupled with projected positive growth of imports and exports, will lead to the public’s improved employment and purchasing power, resulting in an expansion of the non-life insurance industry that corresponds with the economic situation. For motor insurance, a slight growth rate between 4.5 - 6.0 percent is projected despite the fact that total motor sales improved in the final quarter of 2009 and are expected to achieve positive growth, between 7.0 - 10.0 percent, in 2010. Nevertheless, thanks to the maintaining of high level of oil prices, apart from the impact of the enforcement of the OIC’s requirements on “Cash Before Cover” criteria, and a diminishing trend of voluntary motor insurance’s premium rate (expected to become effective in the third quarter of 2010), people will still be cautious in their spending and chose to spend only on necessary goods. With regard to the trend of the non-motor insurance market, it is anticipated that personal accident insurance and health insurance will achieve a high growth rate due to the rising occurrence of accidents or sickness, including the rising frequency of natural disasters. In addition, health insurance is likely to derive some benefits from a proposal to amend the royal decree on “Welfare Money Related to Medical Treatment”, B.E. 2553 which will provide an opportunity for the insured to utilize their privileges from both an insurance company and the government sector. It has been projected that this will help the health insurance market to achieve a tremendous growth rate. Similarly for liability insurance, trade credit insurance and legal liability insurance from unsafe products, they appear promising markets of growth since there are a large number of entrepreneurs who have to comply with an act on the legal liability for damage stemming from unsafe products, B.E. 2551. Concerning negative factors, they include a reduction in fire premium rate from 5.0 - 20.0 percent for risks other than residences, for policies which start their coverage in 2010, which will affect the overall amount of fire premium. 12
As a consequence, it is anticipated that non-life insurance companies will still give importance to expanding their market via issuing economical - price policies, especially “2 Plus”, “3 Plus”, and “Third Liability” motor insurance policies, corresponding to market demand. However, under the current uncertain economic condition, non-life insurance companies will still be more cautious and stringent in their scrutiny for underwriting and claims payment. Ability to Maintain Ratios Based on Business Type In 2009, the Company had a total written premium of Baht 8,796.7 million, with premium growth in nearly all classes of insurance, except marine cargo insurance, which experienced slightly decreasing growth corresponding to the market. The motor premium amounted to Baht 3,210.3 million, representing 36.5 percent of the total written premium, with a constantly diminishing trend of ratio between 2007 - 2009. Meanwhile, a total written premium for other classes of insurance besides motor insurance accounted for Baht 5,586.4 million, or 63.5 percent of the total written premium, compared to 61.6 percent in 2008. This was partly due to the Company’s ability to achieve a high growth rate of its miscellaneous premium, especially for personal accident insurance, which experienced a very high growth rate. In contrast, fire insurance, with a slight loss ratio, witnessed an approximate ratio over the past three years, or around 17 percent of the total written premium. Written Premium Classified by Types of Insurance (Baht : Million) Type 2009 Distribution % 2008 Distribution % 2007 Distribution % Fire 1,531.8 17.4 1,344.7 17.3 1,314.3 17.3 Hull 99.0 1.1 94.8 1.2 78.4 1.0 Cargo 322.0 3.7 347.7 4.5 316.7 4.1 Motor 3,210.3 36.5 2,986.7 38.4 3,295.0 43.0 Miscellaneous 3,633.6 41.3 3,004.7 38.6 2,651.9 34.6 Total 8,796.7 100.0 7,778.6 100.0 7,656.3 100.0 Considering the Company’s loss ratio, it had a diminishing trend over the past three years (2007 - 2009), or 57.2 percent, 47.8 percent and 45.5 percent, respectively. This was mainly due to the fact that non-motor insurance work experienced no major loss, coupled with the consistently decreasing loss ratio for motor insurance over the past three years (2007 - 2009), or 63.1 percent, 59.0 percent and 53.7 percent, respectively. Additionally, it was partly thanks to the Company’s enhancement of its efficiency in continuous investment cost and claims management. Loss Ratio on Underwriting (Baht : Million) 2009 2008 2007 Earned Claims Loss Earned Claims Loss Loss Type Premium Ratio Premium Ratio Ratio (%) (%) (%) Fire 1,064.8 335.5 31.5 989.5 210.1 21.2 46.4 Hull 11.8 7.4 63.0 12.8 12.1 95.0 159.3 Cargo 228.3 55.2 24.2 222.3 47.8 21.5 30.5 Motor 2,870.4 1,542.8 53.7 2,987.7 1,762.8 59.0 63.1 Miscellaneous 1,305.9 554.1 42.4 873.4 399.8 45.8 51.5 Total 5,481.2 2,495.0 45.5 5,085.7 2,432.6 47.8 57.2 13
Page 1 and 2: Bangkok Insurance aims to be the mo
Page 3 and 4: CONTENTS VISION 2 FINANCIAL HIGHLIG
Page 5 and 6: We aim to be the most preferred non
Page 7 and 8: The year 2009 was, therefore, anoth
Page 9 and 10: In addition, the Company was still
Page 11: We aim to be the most preferred non
Page 17 and 18: 6.2 Interest Rate Risk The Company
Page 19 and 20: Increase Convenience for Premium Pa
Page 21 and 22: REPORT OF THE COMPANYûS OPERATIONS
Page 23 and 24: The net investment income in 2009 w
Page 25 and 26: Goals of Business Transactions For
Page 29 and 30: INVESTMENTS IN SECURITIES Investmen
Page 31 and 32: FIVE YEARS REVIEW (Baht’000) 2009
Page 33 and 34: Mr. Chatri Sophonpanich Chairman Mr
Page 35 and 36: Miss Potjanee Thanavaranit Independ
Page 37 and 38: Mr. Witcha Damrongsinsak Director M
Page 39 and 40: 1. Mrs. Srichittra Pramojaney 2. Mr
Page 41 and 42: Miss Pagamas Charusathien Senior Vi
Page 43 and 44: Mr. Sontaya Chaichomlert Senior Vic
Page 45 and 46: Bangkok Insurance, Your Caring Part
Page 47 and 48: 1. Mr. Anant Pongpoon 2. Ms. Anchan
Page 49 and 50: 1. Mr. Alonggorn Gradtip 2. Mr. Ana
Page 51 and 52: Bangkok Insurance Public Company Li
Page 53 and 54: Public Health Relief of Public Disa
Page 55 and 56: 3. Checking to Prevent a Conflict o
Page 57 and 58: To the Shareholders of Bangkok Insu
Page 59 and 60: (Baht’000) Financial Statements i
Page 61 and 62: (Baht’000) Motor Miscellaneous 20
Page 63 and 64:
(Baht’000) Motor Miscellaneous 20
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(Baht’000) Surplus (Deficit) on R
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(Baht’000) Surplus (Deficit) on R
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For the years ended December 31, 20
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4.4 Related party transactions Rela
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5. Significant Accounting Judgments
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Investments in debt securities as a
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The Company received the 2008 finan
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(Baht’000) 2009 2008 Investments
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12. Premium Due and Uncollected The
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20. Basic Earnings Per Share Basic
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Foreign Currency Risk The Company
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Debtors, overdue under 3 months, fo
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FINANCIAL RATIO Financial Ratio 200
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SHAREHOLDING IN OTHER COMPANIES Inv
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THE MANAGEMENT Management Structure
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4. To consider a selection and prop
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The Appointment of the Company’s
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Name Position No. of Attendance/ An
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Name of the Management Committee Po
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1. The Board of Directors shall com
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SHAREHOLDINGS STRUCTURE Breakdown o
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Dividend Payment Policy Since it is
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The Section on Consideration of Sta
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As for the consequence of an implem
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4.1 Policy on Corporate Governance
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5. The Section on the Board of Dire
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5.4 The Board of Directors’ Meeti
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GENERAL INFORMATION Name of Company
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Motor Claims Service Center Krabi B
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Bangkok Insurance Building 25 Satho
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We aim to be the most preferred non-life insurer in Thailand

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