Thai Life Insurance Company Operation Report

Despite the Thai economy in 2007 grew at a slow pace, the Thai life insurance industry still managed to move forward. The achievements could be attributed to various factors that included the unattractive low interest rates offered by commercial banks to their depositors, the fierce competition among life insurance companies, and the government's proposed promotional incentives. Thai Life Insurance, like other counterparts, did benefit from these factors and was able to perform well and maintain the number 2 rank in the life insurance industry in Thailand .

In 2007, Thai Life Insurance emphasized not only strict administration; we also committed to increase our market share. We adjusted strategies for combating the competition, innovated more services and created new insurance coverage to correspond with frequent changing market conditions. So, 2007 was another year that we met our targets, our performances in all departments improved satisfactorily. These could be seen from 3,015,541 new policies with the total 488,055 million Baht sum insured that our company was entrusted by Thai people. With 31,002 million Baht total premiums our company was ranked no.2 highest earner in the Thai life insurance industry, representing 25 % increase from 2006. The first year premiums were 4,725 million Baht, the renewal premiums 21,131 million Baht, the single premiums 5,034 million Baht, and personal accident premiums 112 million Baht. In the same period, we paid 15,606 million Baht claims and policy benefit payment, a 10 % increase from 2006.

Our financial strength, in terms of assets and insurance reserves, surged 12 % respectively from 2006. In 2007, our assets totaled 124,386 million Baht and our life insurance reserves 104,447 million Baht.

Additionally, in 2007 we made more investments to be in line with our company's policy as well as the Life Insurance Act. We invested in only secured holdings with high returns, both in government and private sectors, in the forms of bonds, bank deposits, promissory notes, bills of exchange, equities, debentures, unit trust funds, etc. Our total investment in 2007 increased 116,160 million Baht or 12% from 2006.

With all our strengths, Standard & Poor's (S&P), a credit rating institute, rated Thai Life Insurance A- (A Minus), the highest rating among Thai enterprises. This reflected how strong our financial status, our market base, and our ability to make profits were when compared to other competitors. It also showed our continual capable management skills.

All of these were our strong fundaments to move forward and sustain our status as the leading insurance company forever.