MSIG Annual Report 2017 EN · MSIG Insurance (Thailand) Public Company Limited is a member of MS&AD...

2017Annual Report

Content

MSIG Insurance (Thailand) Public Company Limited

03 Message from Chairman and Chief Executive O�cer

06 Company Profile

07 Strong Financial Credit Rating

07 Core Values

09 Our Management Team

10 Organization Chart

11 MSIG SpeeDi

12 Corporate Social Responsibility Report

22 News & Activities

27 Financial Highlights

78 General Information

Mr. Arnop Phorndhiti Mr. Rattapol GitisakchaiyakulChairman

and Chairman of the Executive CommitteeChief Executive O�cer

Message from Chairman and Chief Executive O�cer

03 MSIG Insurance (Thailand) Public Company Limited


Report on the Performance of MSIG Insurance (Thailand) Public Company Limited for the Year 2017

Dear Shareholders,

The Board of Directors of MSIG Insurance (Thailand) Public Company Limited (the “Company”)hereby presents its performance report for the year 2017 as follows:

In 2017, the Company generated a total written premium income of Baht 3,745 million,which represents a decline of 5.4% from 2016. This was largely due to the decrease in premiumsfrom Motor Insurance business, the result of increasing competition in the motor insurance marketin general as well as an increase in claims for compensation, especially from Third Parties in regardto accidental loss of life, medical expenses and other related compensation. Consequently, theCompany has adjusted its underwriting criteria and premium rates for Motor Insurance and, at the same time, shifted its focus to other classes of business, particularly Travel Insurance and PersonalAccident Insurance. As a result, the Company has achieved successful growth in Travel Insurance,with a significant increase of 103% in premiums over the previous year mainly through the DirectBusiness channel as well as other marketing channels. The Company generated an underwritingprofit of Baht 40.5 million, which was lower than 2016 and the Company’s 2017 Business Plantarget, mainly due to the impact of the significant increase in Motor Insurance claims.

The Company generated investment income and other incomes of Baht 87.7 million, which was28% higher than the prior year, mainly from realised gains from securities. The Company’s overallearnings before tax were Baht 128.2 million and the after tax profit was Baht 94.3 million, representingearnings of Baht 66.1 per share. The Company maintained its strong financial position with a CapitalAdequacy Ratio of 414%, higher than the required regulatory ratio (of 100%). The Companytherefore has strong capital funds to follow through on its strategy to grow business sustainability.

The Company is determined to improve its service quality to become a leader in the general insurance industry market by deploying digital technology for better customer services and bydeveloping an on-line marketing platform for customers so they will have easier access to ourproducts and services. The Company also has initiated various technology projects that emphasizecustomer services with speed and e�ciency. Such projects have also helped develop a workforce wel l equipped with the necessary knowledge and technological ski l ls required to lead theorganization forward and enhance capabilities so we can e�ectively compete in the current evolvingdigital business environment.


Report on the Performance of MSIG Insurance (Thailand) Public Company Limited for the Year 2017

Last year, the Company introduced a mobile application called “SpeeDi” to further improve customer service in motor claim notifications and monitor the service of motor accident claimsurveyors in real time. Information about claims can be continuously uploaded into the Company’sdatabase making all work processes quicker, easier to manage and more e�cient. The “SpeeDi”application also. provides end-to-end customer services such as claim notification and servicesfor other classes of business, policy renewal notices, on-line premium payment, claim statusinquiries and on-line inquiries for policy information and claim history, as well as providing usefulinformation on contract hospitals and contract garages, etc. The Company also monitors the qualityof motor claim surveyors to help ensure timely and professional services.

In 2017, the Company won the “2016 Prime Minister’s Insurance Awards for OutstandingDevelopment” sponsored by the O�ce of the Insurance Commissioner (“OIC”) in addition to the “2017Thailand Call Center and Customer Services Awards” from the O�ce of the Consumer Protection Board(“OCPB”) for the 3rd consecutive year. These achievements were the result of the determination anddedicated e�orts of all employees to continually improve the Company’s service quality and developtechnological initiatives to increase our digital service potential. On behalf of the Company’s Board of Directors, we would like to take this opportunity tosincerely thank everyone who has contributed to the Company’s acheivements in 2017.

Yours faithfully,

Mr. Arnop Phorndhiti Mr. Rattapol Gitisakchaiyakul

Chairman and Chairman of the Executive Committee

Chief Executive O�cer


About MSIG Insurance

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.

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 3,700 million.

The company employs more than 800 sta� in its head o�ce in Bangkok and 21 branch o�ces

nationwide. The company o�ers 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.

Japan Credit Rating Agency (JCR)

Mitsui Sumitomo InsuranceAioi Nissay Dowa Insurance

(Long-Term Issuer Credit Rating)

A.M.Best


(Financial Strength Rating)

Mitsui Sumitomo InsuranceAioi Nissay Dowa Insurance (Financial Strength Rating)

Mitsui Sumitomo Insurance(Long-Term Issuer Credit Rating)

Moody's Japan


(Issuer Rating)

Mitsui Sumitomo Aioi Life InsuranceMitsui Sumitomo Primary Life Insurance

(Insurance Claims Paying Ability)

Rating and Investment Information (R&I)


Mitsui Sumitomo Aioi Life InsuranceMitsui Sumitomo Primary Life Insurance

(Financial Strength Rating)


(Long-Term Issuer Credit Rating)

Standard & Poor'sRatings Japan


Mission & Vision

Mission

Vision

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.

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

Strong Financial Credit Rating As at December 2017


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

IntegrityWe are sincere, fair and just in all our dealings.

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

knowledge and ideas.

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

business.

ProfessionalismWe make continuous e�orts to improve our skills and proficiency to provide high quality services.

Core Values

1

32

57

8

6

4


Our Management Team

1. Mr. Rattapol Gitisakchaiyakul Chief Executive Officer

2. Mr. Buddha Wiriyabaworn Senior Vice President, Business Development

3. Mrs. Lalita Suwanarat Senior Vice President, Compliance & Legal

4. Mr. Matthew James Grose Senior Vice President, Human Resources and Business Excellence

5. Miss. Pawana Thaisuwan Senior Vice President, Finance and Accounts

6. Miss. Sathaporn Thaneerat Senior Vice President, Information Technology

7. Mr. Surachai Rattayavisid Senior Vice President, Business Services

8. Mr. Worapon Lopansri Senior Vice President, Internal Audit

นายอรรณพ พรธ�ติ

Chairman and

Chairman of the Executive Committee

Chief Executive O�cer

Business Development

BusinessServices

Finance and Accounts

InformationTechnology

Human Resourcesand

Business Excellence

Compliance

Internal Audit

Audit Committee


Organization Chart

Mr. Arnop Phorndhiti

Mr. Rattapol Gitisakchaiyakul

MSIG SpeeDi

Continuing our digital transformation, MSIG Insurance launched MSIG SpeeDi, an innovative mobile app as part of the company’s commitment to provide an enhanced andseamless digital experience for the connected customers of today. MSIG SpeeDi providesa suite of functions and services, at the touch of a button, allowing customers to get belowservices from us.

1. Dedicated assistance within 60 seconds: Instead of having the customer call throughto the hotline with the chance of being put on hold, MSIG SpeeDi has a unique functionwhere motor claims can be reported with just the push of a button. A dedicated MSIG sta�will call the customer back within 60 seconds to provide assistance while help is on the way. 2. Arrival of motor surveyor on scene within 30 minutes: Once a customer contacts the24-hour motor claims hotl ine, MSIG wil l locate the customer’s exact location via GPScoordinates. An MSIG Motor Surveyor will then be dispatched to arrive on scene within 30minutes within Bangkok Metropolitan. MSIG SpeeDi, which is integrated with MSIG’s in-houseMotor Surveyor System, will also enable customers to track the surveyor’s location via GPS. 3. In-house surveyors: MSIG understands the importance of speed and e�ciency, especiallyduring times of motor accidents. Therefore, it has engaged its own fleet of motor surveyors,who are trained in-house, to be dispatched during times of need. In contrast to surveyorswho are outsourced, MSIG Motor Surveyors are able to arrive on scene quicker and providecomprehensive service. 4. Wide network of contracted partners nationwide: MSIG SpeeDi serves as a one-stop appfor customers to get all the necessary help that they need, including a list of contractedgarages, hospitals and dealers nationwide for better convenience. A built-in navigationsystem also helps customers to find the fastest route to selected partners. Apart from the above benefits related to motor claims, customers can also look forward toadded convenience with the MSIG SpeeDi app such as in searching for insurance informaton, claims history or even to renew a policy. Having MSIG Speedi on your Smartphone is an excellent way to connect with MSIG Insurance,anytime and anywhere.


Innovative mobile app – MSIG SpeeDi

1 MSIG Children’s Day at Watkhoksang Prachanugoon Primary School

MSIG Thailand conducted Children's Day activities for the students at WatkhoksangPrachanugoon Pr imary School in Ayutthaya province. The chi ldren played fun gamesand received a set of school stat ionery at the end of the act iv ity .

DEK - Developing Education for Kids


Corporate Social Responsibility Report

The company continues to build CSR activities based around our long running(over 10 years) DEK (Developing Education for Kids) theme

2 Hero : Let The Dream Come True



The project “Hero: Let The Dream Come True” is organized for the youth oft h e fi ve s o u t h e r n p rov i n c e s of T h a i l a n d . I n 2 0 1 7 , we again sponsored TravelInsurance (sum insured 20 million Baht) and sportswear for chi ldren attending thisp ro g ra m w h i c h t a ke s t h e m to t ra i n at M a n c h e ste r U n i te d F o ot b a l l C l u b i n t h eUnited Kingdom. 25 outstanding young Musl im chi ldren aged under 12 years took part . Thestudents mainly come from fami l ies a�ected by the v io lence in the border areaswith Malaysia . The project was created the a im of bui ld ing unity, nat ional spir it and to build role models to the younger generations of the five southern provinces.

3 MSIG Sta�s Children Scholarships



D.E.K Program is also for our own sta� – 80 scholarships (total 400,000 Baht)to permanent sta�. The scholarships are awarded for the chi ldren of sta� in l inewith the award’s condit ions: - 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 Khun Rattapol Gitisakchaiyakul , Chief Executive O�cer said the company was veryp ro u d of t h e c h i l d re n ’s a c h i eve m e nt s a n d h e h o p e d to s e e t h e c h i l d re n re c e i vescholarship funds from the company again in the fol lowing year.

4 MSIG Scholarships for University Students



We work in c lose col laborat ion with Pr ince of Songkla Univers ity (TrangC a m p u s ) to p rov i d e 2 s c h o l a r s h i p s to d e s e r v i n g st u d e nt s w h o a re st u d y i n gInsurance Majors and meet our GPA requirements .

1 Mangrove forest and beach forest plantation

Environmental impact



MSIG Thailand arranged a mangrove forest and beach forest plantation day at Sirindhorn International Environmental Park to support the ecosystem by planting various types of plantsand rehabilitating the mangrove forest with fish, corals and sea grass. The goal of the activity was to raise awareness of MSIG sta� to realize the enormous benefits of mangrove forests,which is a natural resource requiring preservation, and learning how to provide assistance in theprotection of forested land that is the habitat of wild animals and species of plants.

2 Water Dam



MSIG Thailand built a Water Dam to help develop a diverse ecosystem, which helps tosupport the natural environment and prevent natural disaters.

1 Give Blood, Save Lives

In cooperation with Phramongkutklao Hospital, we arranged a MSIG Blood Donation Campaign“Give Blood, Save Lives” which over 200 sta� and nearby o�ce workers participated in to supportthe hospital and help save lives.

Donation drive



2 Road construction

MSIG Thailand arranged a CSR fundraising program to build a road from Baan Huay Kook BorderPatrol Police School to the Public Healthcare Centre at Baan Huay Kook Village in Chiang Rai province.MSIG sponsored 150,000 Baht for the road construction. The road is needed for approximately 200 people in the village and neighboring area to more easily get to the public healthcare centre, to improve theirquality of life and perhaps, in some circumstances, to save their lives.



3 The Automated External Defibrillator (AED) Donation

MSIG Thailand arranged a CSR fundraising program to provide an Automated External Defibrillator (AED) to the Public Healthcare Centre of Chalerm Chalong Border Patrol Police School in Nan province.We sponsored the amount of 99,000 Baht.



4 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 hasbeen participating in this event for over 30 years which sees a team of our sta� organize a popularshooting store every year.



1 Launched MSIG SpeeDi

MSIG SpeeDi also o�ers a list of contracted garages, hospitals and dealers nationwide.A built-in navigation system helps customers find the fastest route to the selected partner.Customers can also can.

News & Activities


2 MSIG Provides Support to the Police in Sanam Luang

News & Activities


Mr. Kongpan Kongpinich, Vice President, Motor Claims MSIG Insurance provides funds forequipment including belts, flashlights and handcu�s to help the police with security in the area.

3 Exclusive Event for MSIG “Emperor Club” Agents

News & Activities


MSIG held a special event “MSIG The Glam Night” to recognize and give awards to thetop agents who were members of The Emperor Club in 2017.

4 The Outstanding Call Center in 2016

News & Activities


MSIG received “the Outstanding Call Center 2016” by the O�ce of the Consumer ProtectionBoard to provide services and solutions to customers e�ectively.

5 Prime Minister's Insurance Award 2017 for the company's "Outstanding Development”

MSIG recently received the Prime Minister's Insurance Award 2017 for the company's "Outstanding Development" in 2016. The award presentation ceremony, part of Thailand Insurance Expo 2017, was presided over by Minister of Finance Mr. Apisak Tantiyorawong

News & Activities


27 บร�ษัท เอ็ม เอส ไอ จ� ประกันภัย (ประเทศไทย) จำกัด (มหาชน)

2017FinancialHighlights

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

Registration No. : 0107555000414

Head O�ce : 1908 MSIG Building, New Petchburi Road, Bangkapi,

Huay Kwang, Bangkok 10310

Telephone : +66 28258 8888 Fax : +66 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

Remark: * Mr. Hideyuki Tanaka was appointed as a director, replacing Mr. Isao Nojo, on 18 April 2017 by the Board

meeting resolution on 15 March 2017.

Mr. Arnop Phorndhiti

Mr. Alan John Wilson

Mr. Sanit Rangnoi

Mr. Dhevan Liauburindr

Mr. Hideyuki Tanaka*

Mr. Boonchu Angchaisuksiri

Mr. Rattapol Gitisakchaiyakul

ChangeNumber of Shares heldas at 1 January 2017

st Number of Shares held

as at 31 December 2017 st

General Information


Declaration of holding of shares or debentures of the Company or an a�liated company

(as at 31st December 2017) -None-

Name of Director

79 บร�ษัท เอ็ม เอส ไอ จ� ประกันภัย (ประเทศไทย) จำกัด (มหาชน)

Name of Director

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