Muang Thai growth on track [Bangkok Post, Thailand]

May 14--SET-listed Muang Thai Insurance (MTI) believes its growth prospects for the rest of this year remain on course, driven largely by bancassurance and growing demand for risk management as local political tensions drag on.

The company, established in 2008 in a merger between Phatra Insurance Plc and Muang Thai Insurance Co, reported a 44% rise in net profit in the first quarter to 79.82 million baht, up from 55.53 million in the same quarter last year, propelled by an increase in written premiums and investment income.

Written direct premiums totalled 1.232 billion baht, up by 13% from the same quarter last year. Net investment income rose by 13.64 million to 48.39 million baht and gains on investments in securities were up by 4.87 million to 12.25 million baht.

At the end of March, the company's investment assets were worth 4.78 billion baht, 23% of which was invested in equities, 52% in debentures, 24% in bank deposits and 1% in mortgage loans.

Motor insurance made up 43% of the company's total direct premiums in the quarter, with fire contributing 36%, miscellaneous and industrial all-risks 37%, personal accident 23% and marine 4%.

The increase in sales was driven by economic recovery and an expansion in distribution channels, as well as growing demand for insurance products as Thailand's political confrontations escalated.

President Nualphan Lamsam said the company expected Kasikornbank, LH Bank and Islamic Bank to lead an increase in revenue from the bank channel, which already provides about 37% of the company's premiums.

Non-bank partners such as auto leasing firms and brokerages as well as 10,000 tied agents are also expected to actively generate premiums.

Over the rest of 2010 the company plans to extend its current range of insurance products through banks, including personal accident, with new products such as SME packages, voluntary motor insurance and marine cargo, she said. Muang Thai Insurance will also seek to expand partnerships with new business allies in retailing, telecoms and tourism, she added.

The company is also committed to offering special products such as professional indemnity insurance, directors and officers liability insurance (often called D&O), jewellers' block insurance, pet insurance, collectables insurance and -- in particular -- terrorism insurance, for which demand is growing, especially among listed companies, hotels and department stores.

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