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

6.2 Interest Rate Risk
The Company has invested in financial instruments that yield a return in the form of interest such as fixed deposits
at commercial banks, promissory notes, government bonds and public enterprise bonds. When there are fluctuations in the
interest rates, they result in a reinvestment risk and instrument price volatility.
To minimize the risks, the Company has closely followed up the direction of the return rates in the market in order
to define the investment period in accordance with the fluctuation of the interest rates. In addition, the Company has a policy of
occupying debt instruments until they are due, which will help make a change in interest rates having only a trivial impact on the
instruments’ fair value.
6.3 Risk Associated with Providing Loans
The risks stemming from providing mortgaged loans to outsiders might occur when there are violations of loan
contracts on the part of debtors. This may be due to debtors’ financial crisis incurred by their economic situation. For instance,
debtors engaged in a real estate development project cannot sell their homes, or if they have apartments for rent, the number of
tenants decreases. Or personal debtors’ salary is reduced or there is redundancy. All the aforesaid reasons affect the debtors’
cash flow to be paid for their debts during the economic recession. Furthermore, there may be a reduction in property prices
affecting the Company’s collateral security.
To eliminate or minimize such a risk, the Company has placed stronger restrictions on its debtor analysis, both for
debtors with various projects and personal debtors taking residential loans, including making a cautious and thorough analysis
and evaluation of debtors’ collateral security.
With regard to debtors’ with various projects, the Company has strictly controlled the loan disbursement so that
borrowers may spend their loan according to the approved objective. Besides, the Company has also followed up the progress of
project construction, sales, and marketing plans in order to investigate the possibility of home sales and debt payment.
Concerning personal debtors taking residential loans, the Company’s analyst has examined the completeness,
accuracy and conformity of each debtor’s income and expanses data, based on the Company’s data sources or evidence
presented by the debtors, including their credit data derived from the National Credit Bureau. Above all, each debtor’s collateral
security must be sufficient for debt payment, while the Company consistently follows up and audits debtors’ status, and possesses
a sound system of debtor management which can efficiently support the Company’s debtor management.
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