Year 2007

Marine Insurance
- Hull In 2007, the Company registered a total of Baht 78.4 million in written marine hull insurance premium,
a decrease of 2.4 percent over 2006. This was partly due to some customers’ reduction in the sum insured and sale of their ships,
to a highly competitive market, and to the Baht appreciation, resulting in the premium diminution though the Company gained new
customers.
The net premium written amounted to Baht 11.3 million, a decrease of 6.7 percent over the previous year. This was due
to the Company’s retention of 14.5 percent in 2007, compared to 15.1 percent in 2006. The loss incurred in 2007 increased by
Baht 16.6 million to Baht 16.6 million, compared to the year before. As a consequence of the Company’s underwriting in 2007, the
loss ratio was 159.3 percent, resulting in a loss of Baht 0.01 million and a decrease in underwriting profit of Baht 19.6 million,
compared to 2006.
- Cargo In 2007, the Company registered Baht 316.7 million in written marine cargo insurance premium, a decrease of
16.9 percent over 2006. This was mainly due to the fact that the Company’s large customers did not renew their policies.
The net premium written totaled Baht 209.4 million, a decrease of 12.1 percent, due to the Company’s retention
augmentation from 62.6 percent in 2006 to 66.1 percent in 2007. The loss ratio in 2007 diminished by 1.3 percent to 30.5 percent,
compared to the year before. In 2007, the Company gained an underwriting profit of Baht 85.4 million, a decrease of 14.9 percent
from the previous year.
Motor Insurance
In 2007, the Company registered Baht 3,295.0 million in written motor insurance premium, an increase of only 0.6 percent,
compared to 2006. This was due mainly to the fact that large broker companies greatly reduced insurance work for the Company
as a consequence of the Company’s adjustment of its premium rates in line with the damage incurred, which was in accordance
with the Company’s underwriting policies based on risks rather than pricing strategies. Besides, a slight increase in the written
premium over the previous year resulted from the motor companies’, which are the Company’s business partners, cancellation of
giving the comprehensive motor insurance to their customers, and from some large customers are not renewing the policies.
Nonetheless, the underwriting through an agent still attained a high growth rate via various sale promotion activities. In addition, a
number of large agents increased submitting work to the Company.
The net premium written amounted to Baht 3,159.9 million, a rise of 2.8 percent over the previous year. In 2007, the
Company’s retention was 95.9 percent, a slight increase from 2006, which was 93.8 percent. The loss ratio increased from 61.4
percent in 2006 to 63.1 percent in 2007 due to high loss frequency, apart from increasing repair costs. The company thus gained
an underwriting profit of Baht 291.8 million, a decrease of 14.5 percent, compared to 2006.
Miscellaneous Insurance
Miscellaneous insurance consists of five major categories: General Accident, Engineering, Personal Insurance, Aviation,
and Industrial All Risks. In 2007, the Company registered a total of Baht 2,652.0 million in written miscellaneous insurance
premium, a rise of 10.0 percent over 2006.This was attributed to an increase of 16.0 percent in the direct premium of industrial
all risks insurance, which had a ratio of about 40.0 percent of all miscellaneous premiums. This was in part due to large
customers’ expanded businesses and higher proportion in their underwriting, including some customers’ shift from fire insurance
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