Newsletter 4/2020
Business overview
In accordance with the statistics of the Office of Insurance Commission (OIC), the total non-life insurance premiums for 1 January 2020 – 30 September 2020 amounted to 184,368 MB, or 3.87% growth, separated into
- Car insurance premiums 105,421 MB
- Miscellaneous insurance premiums 67,258 MB
- Fire insurance premiums of 7,790 MB
- Marine and transport insurance premiums 3,899 MB
Total life insurance premiums for 1 January 2020 – 30 September 2020 amounted to 429,165 MB or decreased 3.29% YoY, as 73,814 MB from the first-year insurance policies, 314,448 MB from the recurring insurance policies 40,903 MB from single premium contracts.
The Company continued to grow throughout the year 2020, despite COVID-19 outbreak, in fact, this outbreak was a crisis and had a huge impact on the global economics. However, for TQM, this outbreak was a mega challenge; regardless of how big it was, the Company had proven that the Company could change and stand firmly and sustainably in a new normal lifestyle. The Company learned and processed Big Data to launch new products to meet customer needs throughout the year, such as COVID-19 insurance, Freelance insurance, Fire insurance, Home insurance, Seasonal insurance, Travel insurance, and Insurance for Women.
The Company will not stop expanding sales channels. Throughout the year 2020, the Company expanded its insurance sales channels, including developing platforms for selling insurance both online and offline, such as Shopee, Facebook, Line Official, Boonterm kiosk and Ship Smile Service,
/ and increasing
and increasing sales potential to support continuous growth, meeting the needs of people across the country following the strategy of strengthening the sales and payment channels to sustainably increase Companys revenues.
The Company encourages and supports to use knowledge and experience for sustainable development and innovations for economic, social and environmental benefits; especially, the innovation for working processes internally and inter-organization level as well. By focusing on creative innovations bringing changes, productivity and added value to maximize economic, social and environmental benefits at the same time, Sustainable development projects also help reduce operating costs, such as e-Document system Project to reduce paper use and greenhouse gas emissions. It could reduce the use of A4 paper in 2020 by 14,450,518 sheets or the cost of purchasing paper and ink for business documents by more than 4.52 million baht as well as greenhouse gas emissions from the calculation of the greenhouse gas emission value of the paper producing process of 71,824.77 kgCO2e.
Company Overview
| Description | 2020 | 2019 | YoY | |||
|---|---|---|---|---|---|---|
| MB | % | MB | % | MB | % | |
| Service income | 3,802.5 | 98.3 | 2,711.5 | 97.4 | 370.9 | 13.7 |
| Other income | 53.6 | 1.7 | 72.3 | 2.6 | (18.7) | (25.9) |
| Service costs & expenses | 1,517.4 | 48.4 | 1,457.7 | 52.4 | 59.7 | 4.1 |
| Gross profit | 1,565.0 | 50.8 | 1,253.8 | 46.2 | 311.2 | 24.8 |
| Administrative expenses | 747.4 | 23.8 | 701.9 | 25.2 | 45.5 | 6.5 |
| Net profit | 702.0 | 22.4 | 507.2 | 18.2 | 194.7 | 38.4 |
| Earnings per share (Baht) | 2.34 | 1.69 | 0.65 | 38.5 | ||
- Service income was 3,082.5 MB compared to 2,711.5 MB of FY2019, increased, amounted to 370.9 MB or 13.7% YoY from the increase of sales and services incomes of new products as well as new sales and payment channels suing customer needs.
- Service cost and expenses was 1,517.4 MB or 48.4% of total revenues compared to 1,457.7 MB or 52.4% of FY2019, increased, amounted to 59.7 MB or 4.1% YoY, the increase aligns with the sales growth.
- The gross profit was 1,565.0 MB or 50.8% compared to 1,253.8 MB or 46.2% of FY2019, increased, amounted to 311.2 MB or 24.8% YoY from the increase of sales through online channels and others.
- Administrative expenses was 747.4 MB or 23.8% compared to 701.9 MB or 25.2% of FY2019, increased, amounted to 45.5 MB or 6.5% from the International Financial Reporting Standard No.9 Financial Instruments and No.16 Leases which were effective in the present year.
- The net profit of the Company for the operation results for the year 2020 was 702.0 MB or 22.4% compared to the net profit amounted to 507.2 MB or 18.2% of FY2019, increased in amount of 194.7MB or 38.4% as result of the increase of sales from every channel and the best cost control.
- EPS was 2.34 baht per share compared to 1.69 baht per share of FY2019, increased in amount of 0.65 baht per share.
- The meeting of Board of Directors resolved to approve the dividend payment from the operating results from 1 January 2020 to 31 December 2020 amounted to 345 million baht for 300 issued shares or 1.15 baht per share.