Year 2007

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Debtors, overdue under 3 months, for premium due and uncollected represented 81.7 percent of the net premium. Most of them, however, were within a grace period offered by the Company. For the portion expected to be a bad debt, the Company had provided an allowance for doubtful accounts, which was deemed adequate for the risk of being unable to collect these debts. Simultaneously, the Company also increased channels for debt payment to provide convenience to its customers, agents and brokers in their payment to the Company in due time. Meanwhile, the Company had enhanced its efficiencies in the premium collections and debt follow-up to reduce the number of premium debtors to an acceptable level. Loans As at December 31, 2007, the Company’s total mortgage loans amounted to Baht 2,435.4 million. Out of this amount, Baht 158.3 million, or 6.5 percent, was housing loans extended to small customers, while the remaining Baht 2,277.1 million, or 93.5 percent, was loans extended to real estate developers and other industrial entrepreneurs. The conditions of mortgage loans and contract period, as well as the ratio of loans to collateral values, were in accordance with the requirements of the laws and regulations concerned. Debtors of mortgage loans can be classified by aging as follows: (Baht : Million) Outstanding Period 2007 2006 Principal Interest Principal Interest Current 2,198.5 5.9 2,469.5 7.1 Overdue Less than 6 months 7.5 0.1 3.2 - 6-12 months 1.7 - 0.7 - Over 12 months 227.7 35.1 229.1 18.3 Total 2,435.4 41.1 2,702.5 25.4 Investments in Securities The Company has managed and allocated investment ports in securities corresponding with surrounding changes, whether social, economic or political. It attached to the management policy that yielded appropriate returns on investments within an acceptable risk level. Typically, such investments were in accordance with the Company’s investment policies and other concerned agencies’ rules and regulations. Furthermore, the classification of the investment capital, the fair value of the investment capital based on carrying value, and a consideration of the allowance for loss on impairment all met the requirements of accounting standards concerned. As at December 31, 2007, investments in significant securities were as follows: Bonds amounted to Baht 272.7 million, with a fair value of Baht 269.9 million. Debentures totaled Baht 31.3 million, with a fair value of Baht 21.1 million. The allowance for loss on impairment of debentures under recovery amounted to Baht 10.4 million. The investment capital in listed securities totaled Baht 3,260.4 million, with a fair value of Baht 10,832.7 million, while the investment capital in unlisted securities amounted to Baht 563.7 million. In 2007, the Company recorded the allowance for impairment of unlisted securities at Baht 3.4 million, and when combined with the already recorded amounted;l of Baht 106.5 million, the aggregate of all allowance for loss on impairment was Baht 103.1 million. The Company also consistently followed up and reviewed each quarter the financial status and performance of the companies in which it had invested. In addition, it invested in associated companies to the amount of Baht 118.1 million, and in investment units for Baht 784.5 million, with a fair value of Baht 826.9 million. As at December 31, 2007, the Company’s fair value of all types of securities was Baht 7,612.1 million higher than its costs, which was displayed as a surplus on revaluation of investments in shareholders’ equity. 82
Liquidity Cash Flows As at December 31, 2007, the Company’s cash and cash equivalents rose by Baht 78.0 million to Baht 122.3 million. The Company’s cash flows on its activities were as follows: (Baht : Million) 2007 2006 Cash Flows from (used in) Operating Activities 990.8 1,073.8 Cash Flows from (used in) Investing Activities (304.4) (880.9) Cash Flows from (used in) Financing Activities (608.4) (564.5) Increase (Decrease) in Net Cash and Cash Equivalents 78.0 (371.6) - Cash Flows from Operating Activities amounted to Baht 990.8 million, which came mainly from net direct premium written and net investment incomes. - Cash Flows used in Investing Activities amounted to Baht 304.4 million, which was mainly used in investment in securities, loans and deposits at financial institutions. - Cash Flows used in Financing Activities amounted to Baht 608.4 million, which was mainly used in dividend payment. Current Liquidity Ratio As at December 31, 2007, the Company’s liquidity ratio was 0.54 times. The liquidity assets consisted of cash and deposits at financial institutions, due in one year, amounting to Baht 607.7 million, and promissory notes and bonds, due in one year, totaling Baht 524.9 million. Other significant liquidity assets included securities required by the market, premium due and uncollected, due from reinsures, accrued investment incomes, etc. Investment Expenses In 2007, the Company’s major investment expenses were on an information technology system, building rehabilitation, office equipment and decoration, as well as the establishment of branch offices. In addition, investment expenses were also on an improvement of the Company’s modern branch offices and enhanced efficiency of customer service. Sources of Funds As at December 31, 2007, the Company’s liabilities were Baht 5,792.9 million, while shareholders’ equity was Baht 13,673.8 million. Thus, the debt to equity ratio was 0.42 times. The structure of shareholders’ equity consisted of paid-up capital, premium on share capital, a surplus on revaluation of investments, and retained earnings. A significant increase in shareholders’ equity stemmed from an augmentation of Baht 777.7 million, or 11.4 percent, of a surplus on revaluation of investments. 83
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CONTENTS FINANCIAL HIGHLIGHTS MESSA
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2007 2006 Change 2007 For The Year
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The year 2008, therefore, is anothe
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In 2007, the Company developed a nu
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Marketing and Competition in 2007 F
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Nevertheless, there are still many
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2. Underwriting Risks Thailand has
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6.2 Interest Rate Risk As at Decemb
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Active Care Uniform Care Service Un
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(Baht : million) 2007 2006 Change N
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The net investment income in 2007 w
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to industrial all risks insurance.
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Investments in non-listed securitie
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INVESTMENTS IN SECURITIES Investmen
Page 31: THREE YEARS REVIEW (Baht’000) 200
Page 34 and 35: BOARD OF DIRECTORS AND BOARD OF DIR
Page 36 and 37: Mr. Suvarn Thansathit Independent D
Page 38 and 39: MANAGEMENT COMMITTEE AND MANAGEMENT
Page 40 and 41: Miss Pagamas Charusathien Senior Vi
Page 42 and 43: Mr. Boonkird Chirapathama Senior Vi
Page 44 and 45: FIRST VICE PRESIDENT AND VICE PRESI
Page 46 and 47: ASSISTANT VICE PRESIDENT 1. Mr. Cha
Page 48 and 49: SOCIAL ACTIVITIES IN 2007 Continuin
Page 50 and 51: Scholarship Grants to Poor Students
Page 52 and 53: REPORT OF THE AUDIT COMMITTEE The B
Page 54 and 55: REPORT ON THE BOARD OF DIRECTOR’S
Page 56 and 57: BALANCE SHEETS As at December 31, 2
Page 58 and 59: INCOME STATEMENTS Financial stateme
Page 60 and 61: INCOME STATEMENTS Separate financia
Page 62 and 63: STATEMENTS OF CHANGES IN SHAREHOLDE
Page 64 and 65: STATEMENTS OF CASH FLOWS For the ye
Page 66 and 67: 4. Significant Accounting Policies
Page 68 and 69: 4.9 Unearned premium reserve Unearn
Page 70 and 71: Investments in debt securities as a
Page 72 and 73: 7.2 Summarised financial informatio
Page 74 and 75: (Baht’000) 2007 2006 Investments
Page 76 and 77: 12. Intangible Assets (Baht’000)
Page 78 and 79: 18. Basic Earnings Per Share Basic
Page 80 and 81: Foreign Currency Risk The Company
Page 84 and 85: FINANCIAL RATIO 2007 2006 2005 Fina
Page 86 and 87: SHAREHOLDING IN OTHER COMPANIES Inv
Page 88 and 89: THE MANAGEMENT Management Structure
Page 90 and 91: Name Position No. Of Attendance/ An
Page 92 and 93: The Management Committee is made up
Page 94 and 95: SHAREHOLDINGS STRUCTURE Breakdown o
Page 96 and 97: Shareholding of Management Committe
Page 98 and 99: PRINCIPLES OF GOOD CORPORATE GOVERN
Page 100 and 101: For every shareholder’s meeting,
Page 102 and 103: Customers The Company offers variou
Page 104 and 105: 4.3 Role and Duty Performance of th
Page 106 and 107: (4) The Company’s Secretary The C
Page 108 and 109: - The Use of Insider Information In
Page 110 and 111: 5.5 Procedure on the Determination
Page 112 and 113: North Eastern Region: Khon Kaen 345
Page 114: LINES OF BUSINESS Fire & Allied Lin
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Year 2007

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