The Company has a dividend payout policy at approximately 50% of net income after tax given no adverse economic fluctuation or any other needs. The Company has maintained the policy of quarterly dividend payment for more than 20 years and will continue to maintain the quarterly payments as long as the Company reports robust operating results in order to build and maintain confidence of the Company’s insured persons and shareholders.

The Company has recorded a considerable amount of income from investments, most of which are long-term investments. The Company focuses on securities that are not of high risk taking into consideration the fundamental factors of such securities. Regarding investments in bonds, the Office of Insurance Commission (OIC) has permitted the Company to invest in only domestic government bonds which may not have a high yield as compared to that of foreign government bonds.  

Insurance business primarily relies on risk diversification and takes into consideration the nature of risk exposure and expected return from the underwriting to determine appropriate premium for each client or each insurance type, for example, the higher the risk exposure, the higher the insurance premium, etc.   

For underwriting transactions with a relative high insured amount, the Company diversifies the insurance risks through reinsurance. In doing so, the Company considers the trustworthiness and stability of the reinsurance companies that shall have the credit rating of at least BBB+ (S&P Rating) as stipulated by the Office of Insurance Commission (OIC). Normally, the Company selects the reinsurers with at least Rating A and always keep track of the latest credit rating activities. However, the Company may engage the reinsurance service of certain government-owned foreign insurance companies despite their BBB+ rating according to their country’s credit rating. On the other hand, the Company also accepts reinsurance. The OIC requires the maintenance of Baht 20 – 30 million per property insurance policy in the country before the reinsurance to foreign countries could be conducted. The Company, as a large insurance company having a reinsurance capability, is required to maintain its credit rating by setting aside sufficient reserve and purchasing excess of loss protection. 

The Company sets goals and KPIs on business growth on an annual basis based on the prevailing GDP level. In the event of economic and political challenges, the Company may adjust its business strategies accordingly by continuing to build positive relationship with customers to maintain the existing customer base as well as actively expanding the customer base and launching new products that best suit the prevailing economic situations. At the same time, the Company exercises efficient control over spending and establishes operating processes and human resources capability development to boost productivity. By doing so, the Company will maintain its competitiveness when the country enters the recovery stage.