MSIG Annual Report 2016 EN - msig-thai.com · Company Proﬁle . About MS&AD Insurance Group ......

2016 Annual Report

Content

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Message from Chairman and Chief Executive Officer

Company Profile

About MS&AD Insurance Group

Mission & Vision

Organization Chart

Corporate Social Responsibility Report

News & Activities

Financial Highlights

General Information

MSIG Insurance (Thailand) Public Company Limited

Message from Chairman and Chief Executive Officer

Mr. Arnop Phorndhiti Chairman

and Chairman of the Executive Committee

Mr. Rattapol Gitisakchaiyakul

Chief Executive Officer

03 MSIG Insurance (Thailand) Public Company Limited

Report on the Performance of MSIG Insurance (Thailand) Public Company Limited for the Year 2016

Dear Shareholders,

The Board of Directors of MSIG Insurance (Thailand) Public Company Limited (the “Company”) hereby presents its performance report for the year 2016 as follows:

The Company earned total written premium income of Baht 3,957 million, growth of 3.7% over the year 2015, which was significantly better than the growth seen for the year in the Thailand insurance market (1.2%). The Company was able to increase its market share from 1.8% in 2015 to 1.9% in 2016 and improved its market ranking from No.15 to No.14. This above Plan growth was mainly a result of the increase in premiums from Motor business, through intermediaries and from Personal Accident and Travel Insurance business through Direct and Bancassurance channels. The Company achieved an underwriting profit of Baht 147.2 million, which was also better than the Company’s Business Plan target.

MSIG (Thailand) earned total investment income of Baht 68.5 million derived from interest income and realized gains from securities trading. The Company’s earnings before tax were Baht 194.4 million and the after tax profit was Baht 158.5 million, representing earnings per share of Baht 111.1.

MSIG (Thailand) maintained its strong financial position with a Capital Adequacy Ratio of 418%, which is higher than the required regulatory ratio (100%). The Company therefore has strong capital funds to following its policy to expand business sustainability.

In 2016, the Company performed well overall and was able to achieve above market growth and post a healthy underwriting profit. These achievements were the result of successful adjustments to business strategies, digital business expansion, good expense controls and most importantly the excellent ongoing support of our customers and business partners as well as the capability and dedicated efforts of all employees who worked hard to achieve the Company’s targets as planned.

On behalf of the Company’s Board of Directors, we would like to take this opportunity to sincerely thank everyone who contributed to the Company’s success in 2016.

Yours faithfully,

Mr. Arnop Phorndhiti Mr. Rattapol Gitisakchaiyakul

Chairman Chief Executive Officerand Chairman of the Executive Committee

04 MSIG Insurance (Thailand) Public Company Limite

Company Profile

About MSIG Insurance (Thailand) Public Company Limited

MSIG Insurance (Thailand) Public Company Limited is a member of MS&AD Insurance Group.

The company is a leading international insurer with annual premium income of over Baht 3,900 million.

The company employs more than 800 staff in its head office in Bangkok and 21 branch offices

nationwide. The company offers a comprehensive range of general insurance services and products

including motor, personal accident, travel, home & contents, liability, marine and others, to meet the

needs of personal and commercial customers.

MSIG Insurance (Thailand) Public Company Limited 05

About MS&AD Insurance Group

MSIG Holdings (Asia) Pte Ltd (MSIG Asia)

Located in Singapore, MSIG Asia is the regional holding company and a subsidiary of Mitsui Sumitomo

Insurance Company Limited within the MS&AD Insurance Group.

Mitsui Sumitomo Insurance Company Limited ( MSI )

MSI was formed in October 2001 through a merger between the former Mitsui Marine & Fire

Insurance Co., Ltd. ("Mitsui Marine") and the former The Sumitomo Marine & Fire Insurance

Co., Ltd. ("Sumitomo Marine"). Mitsui Marine and Sumitomo Marine were leading non-life

insurance companies boasting long histories, having been established in 1918 and 1893,

respectively.

MS&AD Insurance Group

MS&AD Insurance group was formed in April 2010 from the business integration of the Mitsui

Sumitomo Insurance Group Holdings, Inc., Aioi Insurance Co., Ltd., and Nissay Dowa General

Insurance Co., Ltd. Today, MS&AD is one of the largest general insurance groups in the world with a

presence in over 42 countries, 17 of which are in Asia. Based in Japan, MS&AD is active in five business

domains, namely domestic (Japanese) non-life insurance, domestic (Japanese) life insurance,

overseas business, financial services business and risk-related business.

Strong Financial Credit Rating As at 15 December 2016

Japan Credit RatingAgency (JCR)

Mitsui Sumitomo Insurance Aioi Nissay Dowa Insurance

(Long-Term Issuer Credit Rating)

Moody's Japan Rating and Investment Information (R&I)

Mitsui Sumitomo Insurance Mitsui Sumitomo Insurance Aioi Nissay Dowa InsuranceAioi Nissay Dowa Insurance (Issuer Rating) (Financial Strength Rating)

Mitsui Sumitomo Aioi Life Insurance Mitsui Sumitomo Insurance Mitsui Sumitomo Primary Life Insurance

(Long-Term Issuer Credit Rating) (Insurance Claims Paying Ability)

A.M. Best


(Financial Strength Rating)

Standard & Poor's Ratings Japan


Mitsui Sumitomo Aioi Life Insurance Mitsui Sumitomo Primary Life Insurance

(Financial Strength Rating)


(Long-Term Issuer Credit Rating)


Mission & Vision

Mission

To contribute to the development of a vibrant society and help

secure a sound future for the world, by bringing security and safety through

the global insurance and financial services business.

Vision

To become the No. 1 General Insurer in the Region in premium, profit and service quality.


Core Values

Customer Focused We continuously strive to provide security to our customers and achieve customer satisfaction.

Professionalism We make continuous efforts to improve our skills and proficiency to provide high quality services.

Teamwork We achieve mutual growth by respecting one another’s individuality and opinions and by sharing

knowledge and ideas.

Innovation We listen to our stakeholders and continuously seek ways to improve the way we work and do

business.

Integrity We are sincere, fair and just in all our dealings.


Organization Chart

Chairman and

Chairman of the Executive Committee


Compliance Internal Audit

Audit Committee

Mr. Arnop Phorndhiti

Mr. Rattapol Gitisakchaiyakul

Business Business Development Services

Our Management Team

1. Mr. Rattapol Gitisakchaiyakul

2. Mr. Buddha Wiriyabaworn

3. Mr. Jun Urakami

4. Mr. Matthew James Grose

5. Miss. Pawana Thaisuwan

6. Miss. Sathaporn Thaneerat

7. Mr. Surachai Rattayavisid

8. Mr. Worapon Lopansri

Finance and Information Human Resources Accounts Technology and

Business Excellence


Senior Vice President, Business Development

Senior Vice President, Compliance

Senior Vice President, Human Resources and Business Excellence

Senior Vice President, Finance and Accounts

Senior Vice President, Information Technology

Senior Vice President, Business Services

Senior Vice President, Internal Audit



CSR 2016 DEK (Developing Education for Kids)

The company continues to build CSR activities based around our long running

(over 10 years) DEK (Developing Education for Kids) theme.

1 MSIG Children’s Day at Wichawadee School We conducted Children's Day activities for the students at Wichawadee

Primary School in Nakornsawan province. All the children played fun games

and received school uniforms and school bags at the end of the activities.



2 Hero: Let The Dream Come True

The project ‘Hero: Let The Dream Come True’ is organized for the youth of the five southern most provinces of Thailand. In 2016, we again

sponsored Travel Insurance (sum insured 20 mill ion baht) and sportswear

for children attending this program which takes them to train at Manchester

United Football Club in the United Kingdom.

25 outstanding young Muslim children aged under 12 years took part.

The students mainly come from families affected by the violence in the border

areas with Malaysia . The project was created the aim of bui ld ing unity,

national spirit and to build role models to the younger generations of the

five southern provinces.


3


MSIG Staff Children Scholarships Our DEK Program is also used to promote education to the families of our staff.

In 2016, 69 scholarships (total 345,000 baht) were awarded to permanent staff.

The award’s conditions are:

Kindergarten to Primary school pupils with a minimum grade

point average of 3.20,

High School to Bachelor’s degree students with a minimum grade

point average of 3.00.

In giving out the scholarships, Khun Rattapol Gitisakchaiyakul, Chief Executive

Officer said the company was very proud of the children’s achievements and

he hoped to see the chi ldren receive scholarship funds from the company

again in the following year.


4


MSIG Scholarships for University Students We work in close collaboration with Chulalongkorn University and Prince of Songkla University

(Trang Campus) to provide three scholarships to deserving students who are studying

Insurance Majors and meet our GPA requirements. This year, we supported one

scholarship to a Chulalongkorn University student and two scholarships to Prince of

Songkla University students with the dual goals of assisting needy students and promoting

insurance careers in Thailand.


5


Giving Back

Ploenchit Fair

The Ploenchit Fair is an annual event organized by the British Community in Thailand for the

Needy (BCTFN) - an organization that raises money for various charities in Thailand. The company

has been participating in this event for over 30 years which sees a team of our staff organize

a popular shooting stall every year.


6


Give Blood, Save Lives

In cooperation with Phramongkutklao Hospital, we arrange a quarterly MSIG Blood Donation

Campaign ‘Give Blood, Save lives’. During 2016, over 200 staff and nearby office workers

participated to support the hospital and help save lives.


7


Pray for Kumamoto In response to our call for our staff to donate to help victims of the earthquake in Japan,

we received 25,000 baht, which we matched with a donation from the company giving

a total of 50,000 baht, which was donated to The Thai Red Cross Society.


8


Promote Workability

We are proud to be part of the Workability Association to promote employment for the

disabled with a founding group of 14 employers who have declared themselves ready to

promote awareness in society about the disabled and are willing to provide employment

opportunities to them.

‘Disabled... from Problem to Power’ As we believe in equal opportunities, we joined this campaign to support sustainable

careers by supporting the Ray Bakery School (under the Father Ray Foundation) ‘Half 'n Half’

bakery shop in Chonburi.


9


Insurance Industrial Service

As a part of our corporate services to society, MSIG Thailand contributes and shares

insurance knowledge by participating in conferences and holding seminars with a number of

universities, including Chulalongkorn University, Prince of Songkla University (Trang Campus),

Chiangmai University, Khonkaen University, Mahidol Universit, Suranaree University of

Technology and Burapha University during 2016.



Customer Focus

The Business Excellence department have significantly expanded the company’s

efforts to focus on the end customer through satisfaction surveys and continuous

improvement activities. This includes the ‘Chairman’s Award’ program which recognizes

and rewards ‘Above and Beyond’ service performance by staff from customer

compliments. There were 13 Chairman’s Award recipients in 2016.


1

News & Activities

MSIG Thailand Awarded the Regional CEO’s Innovation Awards 2016

Mr. Alan John Wilson, Managing Director of MSIG Holdings (Asia) Co., Ltd., presented

‘The Regional CEO's Innovation Awards 2016’ to Mr. Rattapol Gitisakchaiyakul (3rd from left)

, CEO of MSIG Insurance (Thailand) Public Company Limited for the “MSIG Speed – In-house

Surveyor” project. The Regional CEO's Innovation Awards is held every years to promote

employee creativity across the region.


2

News & Activities

MSIG Launches Travel Around The world – Blogger Contest 2016 Campiagn

Mr. Rattapol Gitisakchaiyakul, Chief Executive Officer of MSIG Insurance (Thailand)

Public Company Limited and Travel Around The World magazine organized

‘Travel Around The World - Blogger Contest 2016’ campaign searching for new online

bloggers writing about their travel experiences. The winner of this campaign won

a travel package to Taiwan for 3 days 2 nights and the winner’s article was published

in Travel Around The World magazine in May 2016 issue.


3

News & Activities

MSIG Presents Prize to the Blogger Contest Winner 2016

MSIG Insurance (Thailand) Public Company Limited presented the prize of Taiwan

holidays package to Khun Anusan Sarananda, the winner of the Blogger Contest

2016. This contest was in cooperation with Travel Around The World magazine

aiming to find new blood of travel bloggers and sharing memorable travel

experience in overseas,


4

News & Activities

MSIG focuses on the Travel Insurance Market

Mr.Rattapol Gitisakchaiyakul, Chief Executive and Mr. Surachai Rattayavisid Senior Vice President, Business Services of MSIG Insurance (Thailand) Public

Company Limited, organize a press conference to disclose MSIG’s business plan

for the year 2016, targeting over 100% growth for travel insurance and aiming

to be a market leader in travel insurance by the end of 2016.


Financial Highlights


General Information

Name of Company : MSIG Insurance (Thailand) Public Company Limited.

Registration No. : 0107555000414

Head Office : 1908 MSIG Building, New Petchburi Road, Bangkapi,

Huay Kwang, Bangkok 10310

Telephone : +66 (0) 2788 8888 Fax : +66 (0) 2318 8550

www.msig-thai.com

Type of Business : Insurance

Registered Capital : 1,426,662 Ordinary shares, in a total value of 142,666,200 Baht

Paid-up Capital : 1,426,662 Ordinary shares, in a total value of 142,666,200 Baht

Legal entity which MSIG holds share exceeding 10% : -None-

Declaration of Directors on a direct or indirect interest in any contract which is made by the

Company during an accounting year -None-

Declaration of holding of shares or debentures of the Company or an affiliated company

(as at 31st December 2016)

4,067

6,133 6,1331. Mr. Arnop Phorndhiti

2. Mr. Alan John Wilson

3. Mr. Sanit Rangnoi

4. Mr. Dhevan Liauburindr

5. Mr. Isao Nojo

6. Mr. Boonchu Angchaisuksiri

4,0677. Mr. Rattapol Gitisakchaiyakul

Name of Director ChangeNumber of Shares held as at 1 January 2016

st Number of Shares held

as at 31 December 2016st

Remark: *Mr. Boonchu Angchaisuksiri was elected as a director, replacing Mr. Supat Tansathitikorn, who retired from his directorship

at the 2016 Annual General Meeting of Shareholders on 22ndApril 2016.


MSIG Annual Report 2016 EN - msig-thai.com · Company Proﬁle . About MS&AD Insurance Group ......

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Transcript of MSIG Annual Report 2016 EN - msig-thai.com · Company Proﬁle . About MS&AD Insurance Group ......