Wed, May 23, 2012 13:41:23 PM
Bangkok Post
Wed, May 23, 2012 13:41:23 PM
Bangkok Post
ING Life, the local life insurance unit of the Dutch financial services giant ING group, is committed to expanding its operations and profitability this year despite the looming prospective sale of ING's Asian insurance operations.
"We will continue to double our agency channel, strengthen our partnership with TMB Bank in which ING is a major shareholder and launch new products," Ignacio Aguilar, the president and chief executive, said yesterday.
Participating life insurance policies have the potential to earn policyholder dividends from the company's return based on operating results.
Mr Aguilar said ING Life is set to take off this year with a new management structure and a stabilised agency distribution channel.
The company has struggled to revamp its agency channel over the last three years since the departure of Somphot Keitkraival, a former deputy chief executive.
His forced resignation prompted dozens of agency staff to resign in protest.
In the ensuing legal battle, the Central Labour Court in 2009 ruled in favour of Mr Somphot and ordered ING to pay him compensation of 68 million baht.
The insurer's new sales measured by first-year premiums fell by 7% to 2.2 billion baht last year, due mainly to the floods that hit several provinces late in the year and the exit of tied agents.
Nonetheless, the company produced total premiums of 10.2 billion baht, up by 9% from 2010. Earnings surged 55% to 577 million baht.
ING Life has set a goal of 39% growth in first-year premiums, driven by tied agencies and bancassurance, expected to grow by 57% and 20%, respectively.
Mr Aguilar said the ING Group would probably complete a study of a prospective sale and finish talks with potential buyers by mid-year.
Recent reports said AIA Group Ltd was considering a bid for ING's Asian insurance operations.
ING earlier scrapped plans to list its combined Asian and European insurance and investment businesses due to the EU financial crisis.
