Plan to change Insurance business Established a holding company to expand investment
“If our business is based on being only one insurance business. It may not be a sustainable situation anymore. Therefore, it is the main reason why Bangkok Insurance has a direction to restructure. We have been studying and formulating strategies for some time. Until today We are ready to restructure into a holding company.”
Amidst new challenges that continually arise Especially the behavior of consumers is changing rapidly, resulting in the insurance business. Faced with fragility which if you want to move forward with stability and sustainability A new business structure is required. To facilitate growth through investment in diverse and potential businesses. without being tied to just one insurance business
One of the insurance companies undergoing a major restructuring is Bangkok Insurance Public Company Limited (BKI) , which has established a holding company to create new business opportunities. Under the leadership of Dr. Apisit Anantanahtratan, President and CEO, the strategy focuses on creating new opportunities, enhancing competitiveness, and increasing flexibility in expanding investments.
Overcoming business challenges
Dr. Apisit stated that the objective of restructuring Bangkok Insurance Public Company Limited to establish BKI Holdings Public Company Limited (BKIH) is to operate as a holding company in other businesses, both those related to its core insurance business and those outside of it. The holding company will play a role in policy setting, oversight, and management of the business group in line with the overall strategy, as well as managing investments in new businesses that create sustainable benefits for all sectors.
For Bangkok Insurance PCL. It is a listed company on the stock exchange. Has been in business for more than 77 years and is one of the insurance companies with expertise in the business. and has always had good overall operating results There is a fixed dividend payment. and the proportion of dividend payments is continually increasing Investors are also aware of Bangkok Insurance's current investor care policy.
At the same time, if we look at the current situation, we will see that Bangkok Insurance is tied to only one general insurance business. It has made us start to see that in today's world of business operations there are many fluctuations. with various environmental factors that affect the business, some are predictable, some cannot be predicted
“For example, in the past, we did not think that there would be a major flood that would happen to Thailand. or before that We never thought that we would face a tsunami that would destroy the property and lives of many people. Or the great flood in 54, we did not think that we would have to face a major flood situation. It brings a lot of damage to the insurance industry.”
Most recently in the past 2-3 years with the COVID-19 outbreak situation. Bangkok Insurance is another insurance company that supports these risks. which the company considers to be quite fragile Because many companies are unable to continue fighting. and many companies had to close and disappear from the industry.
Dr. Abhisit said Bangkok Insurance is one of the companies affected by unexpected situations. Every time in the past, even though the company was stable, strong, and able to stand its ground, we asked whether we had been affected or not. was affected as well. In some years the situation has a rather severe impact. Our operating results also suffered losses.
However, even though Bangkok Insurance has experienced some losses, But because the company has reserves and relatively large accumulated profits This allows the company to continually pay dividends to shareholders. The shareholders still give confidence. As for customers, the company is able to take care of them very well. So that everyone can receive compensation quickly Even if the company has to spend a lot of money.
“If our business is based on being only one insurance business. It may not be a sustainable situation anymore. Therefore, it is the main reason why Bangkok Insurance has a direction to restructure. We have been studying and formulating strategies for some time. Until today We are ready to restructure into a holding company.”
As for the progress in restructuring The Company held an Extraordinary General Meeting of Shareholders No. 1/2566 on October 6, 2566 to consider and approve the restructuring plan and other matters. Then BKIH, which has now established a company, submitted its filing on November 20, 2566 to the Securities and Exchange Commission (SEC) for further consideration. Within a maximum period of 135 days once the SEC has considered and approved it. Report the approval results to BKI.
After that, it will enter the company's operating process, where BKIH will issue additional common shares of BKIH in exchange for common shares of BKI at a rate equal to 1 common share of BKI per 1 common share of BKIH, which is expected to occur during the quarter. 2nd place of 2567
After the tender offer for the Company's securities is completed, BKI will proceed with the delisting of the Company's shares from being listed securities on the Stock Exchange of Thailand and BKIH will be listed on the Stock Exchange. replacing the company's shares on the same day that the shares were delisted from the stock exchange, which is expected to occur in the second quarter of 2 as well. BKI shareholders who participated in the stock exchange or accepting an offer to purchase securities from BKIH will not be affected by any tax. as a result of the share exchange transaction
Dr. Abhisit said Business restructuring this time The company's customers are definitely affected. But it is a better impact. Because the company has expanded investment and developed technology to help expand marketing and increase the quality of service to meet the needs of customers.
“Because of Bangkok Insurance's work philosophy That is, we are a business that cares. and stay side by side with customers We care about our customers every step of the way. This means that we will be able to provide services to customers that meet their needs more conveniently, clearly, and quickly. We see that Bangkok Insurance's basic customers will definitely be affected. But it is an impact that is clearly expected to improve in the future.”
Build subsidiary companies to generate income
Dr. Abhisit said for future business operations After restructuring the shareholding structure The company plans to conduct business through 2 groups, consisting of:
- Main business group Carrying out business related to insurance The total asset size will be not less than 75% of BKIH's total assets, which consists of 3 business lines, including the non-life insurance business in Thailand (Non-Life Insurance), the overseas insurance business. (International Insurance) and businesses related to the insurance business (Insurance Related)
- Other business groups Carrying out business outside of insurance The total size of assets will not exceed 25% of BKIH's total assets. The Holding Company will consider the possibility of investing in businesses with similar trends. Tends to promote the insurance business and/or businesses that will benefit students Investors and consumers
For BKIH, it is in the process of overcoming challenges and growing. ceaselessly ahead with vision “Focus on creating sustainable stability through the insurance business and a variety of other businesses” with the mission “Create good operating results through investment in the core business of insurance and Other potential businesses Under the principles of good governance Taking into account every stakeholder group for sustainable growth” in order to lead the organization to the goal of future success
Open Bangkok Insurance business plan
Dr. Abhisit said The company's business strategy in 2567 will aim to support guarantees for large government projects. Whether it is a project connecting various logistics deep sea port High-speed electric train, which the company will carefully try to take part in risk insurance. In order to attract insurance premiums to the company, at the same time, under the development of technology and connectivity platforms. By bringing insurance along with product offerings of other businesses. Under the company's platform that has developed with potential, it is believed that in 2567 the company will be able to expand Mass Marketing.
This is due to consumers' health concerns. There should be more interest in purchasing health and accident insurance. And on these platforms, we connect with various partners efficiently. It will promote lower working costs. There is easier and easier access. This is the overall strategy of Bangkok Insurance, which is expected to grow at approximately 2567% in 8 from 2566, which is expected to grow at 12%.
However, the main product is still cars. Because the total proportion of Bangkok Insurance The company's written premiums account for 44% of automobiles, which will be the driving force with EV cars growing exponentially.
At the same time, the port underwrites large projects. Expansion of government investment and projects that have been successfully built It will change the insurance for construction risks. Coming to the risk of already completed and used assets. The company has taken risks in various projects. and expanding into Mass Marketing with partners such as Brat Telecom, which has tens of millions of customers. If you get 10% share, you will be able to promote growth.
“Business opportunities and benefits of restructuring the company It will create stable and sustainable benefits for investors in the long term. Ready to raise the level of service to reach customers directly and broadly. It has a positive effect on consumers. By setting up a management team with expertise in each business. Leads to efficient management Both strategic product design Create modern technology and innovation Focus on creating a good experience and being able to respond to customer needs to achieve maximum satisfaction.”
Read the CEO Talk column in the December 2566 issue (No. 500) of the Finance and Banking Journal , available in digital format: https://goo.gl/U6OnIi
Find all the ways to order Money and Banking magazine, both current and back issues, all in one place here: https://moneyandbanking.co.th/2023/18250/
