Mittare aims to make B90m profit next year

POST REPORTERS

Mittare Insurance believes it can make a profit of 90 million baht in 2008 after losing about 20 million baht in 2006 from the Compulsory Motorcycle Insurance Pool (CMIP), which the company co-founded seven years ago.

According to Sukhathep Chansrichawla, the company's president and CEO, Mittare plans to clear all accumulated losses incurred from the CMIP this year and turn a healthy profit of at least 90 million baht next year.

Members of the CMIP decided in December 2005 to liquidate it effective from January 2006. The pool had heavy accumulated losses due to a loss ratio as high as 224%.

Mittare Insurance had an operating net loss of 70 million baht in 2005 because of the problems with the CMIP. According to Mr Sukhathep, the company achieved business growth last year with sales based on direct premiums of 1.54 billion baht, a rise of 10%. Motor insurance accounted for 95% of its business portfolio, with the remainder from non-motor coverage.

Mr Sukhathep acknowledged that it was difficult to grow into the non-motor segment since the company had no connections with commercial banks. Despite that, he remains upbeat that overall business will grow by at least 10% this year to 1.7 billion baht.

Founded in 1947 as Thai Prasit Insurance and Warehouse Co, the company later changed its name to Thai Prasit Insurance Co and was rebranded as Mittare Insurance in 2000.

General News
Bangkok Post
Thursday January 25, 2007