Notice of the 20 Annual Ordinary General Meeting of Shareholders TO

Mr. Panus Thiravanitkul, the President, reported that written premiumsof the Company in the year 2011 continue to increase in line with the set target, exceptthe aviation insurance premium which in the year 2010 the insured has decided to pay byone single payment instead of the previous practice of 4 equal installments resulting in alarge portion (75%) of the 2011 premium of that account which would be booked andrecognized as the revenue in the year 2011, had already been booked and recognized asthe revenue in the year 2010. Therefore the written premium of the year 2011 hasslightly increased by only 5.2 per cent.In spite of the premium increase, the Company still showed anunderwriting loss because of the serious flooding in high economic and industrial areasin the last quarter of 2011. The Office of Insurance Commission (OIC) estimated that theflood loss to the market would be around 450,000 million baht as compared to theproperty premium income of just only around 17,000 million baht.follows:As for Bangkok Insurance, we provisionally estimated our loss asEstimated Loss- Fire (6,302 claims)- All Perils ( 599 claims)- Motor (2,875 claims)- Engineering ( 54 claims)(Unit: Million Baht)22,087Less Reinsurance 18,490Company Retention 3,597Less Excess of Loss 2,682Net Retention 915Plus Inward Treaty 1,380Total estimated flood loss 2,295At the present, the Company has already paid the compensation tomore than 85% of insureds who have suffered by this flood. The remaining claims arethose with high sum insured and complexity in assessing the damage and involving thirdparties such as surveyors, loss adjusters and reinsurers. However, the Company hasalready made interim payments to relieve financial burden of the customers and we willendeavor to settle the claim soonest.Page 13