KBank eyes non-life goal of B5bn
Kasikornbank (KBank) has set a target for its non-life insurance premiums from bancassurance to reach 5 billion baht in the next three years, which would make it the market leader.
For the first eight months this year, the bank's non-life insurance premiums amounted to 1 billion baht. It targets 2 billion total by year-end, said senior executive vice-president Pakorn Partanapat.
Muang Thai Insurance (MTI) started to exclusively offer its policies through the bank's 1,000 branches this year.
Initially, the country's fourth-largest bank by assets concentrated on motor insurance for passenger vehicles, as there are 12.9 million vehicles in the country.
Total motor insurance premiums amounted to 59.3 billion baht, 58% of non-life premiums for the first half.
Total non-life premiums generated from all banks' bancassurance stood at 12.75 billion baht, 32% of which was motor insurance.
"We expect new car sales to return to normal, around 1 million units annually, starting next year in line with the recovering economy. Motor insurance has high growth potential and the bank plans to focus on mass car brands," he said.
Total non-life insurance premiums are expected to grow 3-5.9% this year after showing marginal growth of 1% in the first half due largely to the country's sluggish economy and the dip in new car sales. However, growth is expected to surge 10% next year based on the country's GDP growth of 4-5%.
Thailand's percentage of non-life insurance premiums to GDP is 1.7%, far below the 2.81% global rate, indicating room to grow.
Over the past five years, Thailand's non-life insurance expanded 5-10% on average, while insurance sales through bancassurance have risen 20%, reflecting consumers' rising awareness of risk protection.
Nualphan Lamsam, MTI's president and chief executive, said the company's premiums tallied 2.86 billion baht, accounting for 4.12% of the non-life industry's premiums for the first seven months of 2014.
KBank's shares on the SET closed yesterday at 224 baht, down four baht, in trading of 775 million.