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

MESSAGE FROM THE CHAIRMAN
The year 2009 was the year in which Thailand was confronted with both political and economic problems throughout,
which unavoidably impacted the non-life insurance industry. This could be seen from an increase of only 3.4 percent in direct
written premiums in 2009, the lowest growth rate since 2000, the first-year of positive growth after negative expansion between
1998 and 1999, which was a critical period for financial institutions. Furthermore, motor insurance, having the premium ratio of 60.0
percent of total direct premium written, witnessed a decreasing growth rate of only 2.0 percent in 2009, compared to 5.6 percent
in 2008. Nevertheless, the signal of Thai economic recovery in the latter half of 2009, coupled with an increasing trend of total
motor sales in the final quarter of 2009, should make a good impact on the economy in 2010. Although there had been some
negative factors, evaluations of various factors by a number of local institutes anticipated a positive growth rate of 3.0 - 5.0 percent
for the Thai economy in 2010, compared to a negative growth rate of 2.3 percent in 2009.
For the non-life insurance industry, the year 2009 witnessed a significant change since it was the first year in which the
Office of Insurance Commission (OIC) started to implement the premium collection criteria for motor insurance called “Cash Before
Cover”. This inevitably caused non-life insurance companies to modify their work performance approach so that it conformed to
OIC’s declarations, which was good for the whole system of non-life insurance industry since the companies’ customers, agents
and brokers would have to pay their premium earlier. As a consequence, the non-life insurance industry’s rate of premiums due
and uncollected had significantly diminished, particularly non-life insurance companies having a high ratio of motor insurance
premium, making their financial liquidity obviously better.
The Company’s total written premium for 2009 was quite satisfactory, standing at Baht 8,796.7 million, an increase of
13.1 percent, with earnings before tax of Baht 1,282.9 million, a rise of 17.8 percent. The amount consisted of 48.8 percent from
underwriting and 51.2 percent from investment. Our underwriting net profit rose by 6.6 percent to Baht 939.3 million, or earnings
per share of Baht 18.53, compared to Baht 17.38 in the previous year.
Such success resulted from the Company’s efficient management, carefully formulated underwriting policy flexible to
situations, risk management policies covering important factors, appropriate operating costs management, including issue of new
products to stimulate personal customer markets such as the Comprehensive Motor Insurance policy Comprehensive Value
Package and the Value Packages, or 4 - Classic Diseases Package and a Salary Man Package. This was carried out in parallel
with constant brand development, making it possible for the Company to expand its personal customer base by over 30.0 percent,
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