, Thailand

Thailand's Bangkok Insurance going strong despite looming pressures

Its balance sheet is supported by strong risk-adjusted capitalisation.

Thailand’s Bangkok Insurance (BKI) is seeing strong operating performance, supported by robust underwriting and investment income, but the pandemic and a competitive market are likely to pressure these metrics over the short-to-medium term.

According to an AM Best report, the insurer recorded a five-year average return on equity (ROE) of 7.4% and a 79.1% operating ratio from 2016 to 2020. Its balance sheet is underpinned by strong risk-adjusted capitalisation, with capital adequacy supported by low net underwriting leverage.

On the other hand, the latter is partially offset by a high-risk investment portfolio consisting of large and concentrated holdings in domestic equities. 

Other balance sheet considerations include the company’s robust regulatory solvency and its moderate dependence on reinsurance to manage exposure to catastrophe events, accumulations and large single risks, the report said.

The insurer’s reported shareholders’ equity has been on a decline due to unrealised fair value losses arising from available-for-sale investments.

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC emerges as leader in renewables insurance
RE is projected to account for 45% of global electricity generation by 2030.
Insurance
IFRC-DREF triggers insurance payout after disaster relief demands exceed threshold
The policy provides up to $16.92m in coverage.The International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (IFRC-DREF) has triggered its first-ever insurance payout after disaster relief demands exceeded its deductible threshold. 
Insurance