ÃÒ§ҹ»ÃШӻ‚ 2554
THE SIAM COMMERCIAL SAMAGGI INSURANCE
ANNUAL REPORT
2011
Index
Profit on Underwriting and Net Profitิ
FINANCIAL HIGHLIGHTS
276
02
201
04
(276)
Financial Highlight
Report of the Board of
Director’ s Responsibility
for Financial Statements
Massage from
the Board of Directors
Report of
the Audit Committee
08 11
07
14
Report of the Human
Resource and
Compensation Committee
18
Total Premium Written
Earn Premium
Board of Directors
Management
Analysis
FINANCIAL HIGHLIGHTS
unit : Million Bath
unit : Million Bath
2011
Total Assets
17,111
Investment & Loans & Bank Deposit 3,994
Total Liabilities
15,935
Issued and Paid-Up Capital
454
Shareholders’ Equity
1,176
FINANCIAL POSITION
2011
Return on Assets (Average)
(2.55%)
Return on Equity (Average)
(19.63%)
Return on Investment (Average)
3.17%
FINANCIAL RATIO
Pay out Ratio
*
2010
4,994
3,422
3,293
454
1,702
2009
3,969
2,952
2,282
454
1,687
2009
2010
5.05%
6.21%
16.41% 12.72%
3.56%
3.74%
135.72% 135.72%
OPERATING PERFORMANCE
Total Premium Written
Net Premium Written
Earned Premium
Net Loss
Profit on Underwritten
Income on Investment
Operating Expense
Net Profit
2011
3,404
2,671
2,487
1,823
(407)
118
146
(282)
2010
2,945
2,395
2,320
1,219
159
119
170
278
2009
2,863
2,189
2,059
977
587
103
611
201
unit : Million Bath
PER SHARE
Basic Earnings per Share
Book Value per Share
Dividend per Share
Note :*Awaiting Approval from The Shareholders Meeting
For the year 2012 and 2011, the Company has adopted certain new and revised financial reporting standard
2011
(3.11)
12.94
*
2010
3.06
18.72
3.00
2009
2.21
18.56
3.00
55
Report of the
Risk Management
Committee
32
Management
Structure
16
Report of
the Nomination
Committee
Business
and Industry
Executives
33
Risk Factors
Enterprise Risk
Management
60
63
68
49
Related
Party Transactions
Financial
Statements and
Notes
72
General Information
137
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Message from the Chairperson
Message from the Chairperson
Over the course of 2011, the non-life
insurance industry continued to see
positive upward-trending expansion
with 11.9% rise in direct premiums.
The sector with marked growth was
the personal insurance business, e.g.
accident insurance and health insurance
which grew 24.5% and 20.9% respectively.
Home fire insurance and motor insurance
sectors continued to constitute the
core insurance products in Thailand,
although showing less strong growth
Khunying
Jada Wattanasiritham
Chairperson
than the accident and health segments at 2.8% and 11.3% respectively.
The commercial sector, comprising all-risks, marine and engineering
insurance, expanded industry-wide by 18.9%, 6.0% and (2.2%)
respectively. These do not include mega-project or specialty business
underwritten by specialized firms.
In 2011, the Company registered increase in premiums written of
15.6% - a higher rate than prior years. Gross premiums for the year
totaled 3,404 million baht, while net earned premiums amounted to
2,486 million baht, or 7.2% rise over the previous year. Expansion
continued primarily in the personal insurance business, particularly
in the accident and motor insurance segments which reported 29.3%
and 11.5% increases respectively. The Company also retained its
share of fire business, and underwriting of home fire insurance for
general customers, of which some categories also offer flood protection.
Details of our business composition are given in Note 23 to the
Financial Statements and the Business and Industry section of the
annual report.
The Company’s normal operations recorded underwriting expenses of 2,372 million
baht, and after income and commissions/brokerages of 86 million baht, the
underwriting profit for the year came to 201 million baht, a 26.7% increase over
2010. This, when combined with investment income of 118 million baht, resulted
in a net profit before tax of 337 million baht, a year-on-year increase of 11.0%.
However, it is widely known that the 2011 deluge in Thailand has caused considerable
and extensive damage to lives and property. As underwriter of the risk, the non-life
insurance industry naturally cannot avoid such large volume of insurance claims.
In this regard, the Company has also been affected in terms of financial results,
in spite of necessary preparations made to a certain extent.
Following the great floods, the Company has been able to serve and support more
than 15,000 retail customers who make up the majority of our clients. Claims from
the incident are estimated to total 11,952 million baht, as set out in Note 3 to the
Financial Statements. Net loss from the floods, after reinsurance recoverables,
would be 607 million baht, as shown in the Statement of Comprehensive Income.
The loss estimate, which has been certified by internationally recognized actuaries,
has resulted in the Company reporting, at end of December 2011, an underwriting
loss of 406 million baht and a net loss before tax of 270 million baht. After accounting
for income tax of 12 million baht following adjustments of tax rates from 30% to
23% and 20% as detailed in Note 28 to the Financial Statements, the Company
posted a net loss of 282 million baht for fiscal 2011.
As regards financial position, the Company had total assets of 17,111 million baht,
an increase of 242.6% over 2010. Total liabilities were 15,939 million baht, up by
384.0% as a consequence of the aforementioned loss incurred from 2011 floods.
Despite the above impact, we are still able to maintain our financial strength and
status as one of the leading domestic insurers and to pursue our policy of stable
and sustainable business growth. To ensure the Company is well prepared in the
business, the Extraordinary General Meeting No. 1/2555 (2012) resolved to approve
a 660 million baht increase in its registered capital through a rights offering
to existing shareholders. The funds received from the capital increase will be
used as working capital for our future operations.
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5
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Report of the Board of Directors’ Responsibilities for Financial Statements
Report of the Board of Directors’
Responsibilities for Financial Statements
On management approach in 2011, the Company was able to maintain stability
in its motor business profitability. This was achieved through the implementation
of a policy which focuses on stable growth, systematic and closely supervised
underwriting procedures as well as improvement of after-sales service. We also
aimed to enhance our organization-wide risk management system toward a more
operational approach to enterprise risk management, hopefully to serve as the
tool for promoting our internal strength against growing competition from the
approaching market liberalization. Furthermore, the Company has geared itself
in the area of management and specialized personnel such as actuaries, with a
view to supporting its operations in the market expected to be more intensifying
from 2012 onwards.
On behalf of the Board, I would like to express our gratitude to all our shareholders,
customers and business partners for the kind support and confidence in the
Company. May I take this opportunity to offer our sincere apologies for any delay
that may have occurred in our service and processing of flood claims. I am also
thankful to every member of the management and the staff for their commitment
and hard work, from the frontline to the back office, in ensuring efficient service
to all our customers and partners.
The Board of Directors of The Siam Commercial Samaggi Insurance Public
Company Limited have prepared the financial statements which disclose the
Company’s 2011 financial status and operation results according to the regulations
of the Public Company Limited Act B.E.2535.
The Board of Directors is responsible for the Company’s financial statements as
well as financial information presented in the annual report. The said financial
statements have been prepared in accordance with generally accepted accounting
standards in Thailand. In preparing these reports, the Company has adopted
appropriate accounting policies and applied them consistently. For the benefit
of shareholders and investors, adequate disclosure of significant information has
also been made in a transparent manner in the notes to the financial statements.
The Board has ensured that risk management process is in place while proper
and effective system of internal control is maintained, so as to achieve reasonable
assurance that all financial information is accurate, complete and adequate in
safeguarding the Company’s assets and in preventing any fraud or material
mismanagement.
In this connection, the Board appointed an audit committee comprising 3 independent
directors to be in charge of overseeing the quality of financial reporting and internal
control system. The opinions of the Board and the Audit Committee regarding
the Company’s internal control system are included in the annual report under
the section of Audit Committee’s Report and the Corporate Governance Report.
Khunying Jada Wattanasiritham
Chairperson of the Board
(Khunying Jada Wattanasiritham)
Chairperson of the Board
6
(Mr.Chiravuthi Bunyasiri)
Managing Director
7
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Report of the Audit Committee
Report of the Audit Committee
The Audit Committee of the Siam Commercial Samaggi Insurance Public Company
Limited has comprised three Independent Directors who are expert and experienced
in finance and organizational management. The Committee has discharged the
duties delegated to it by the Board and in accordance with the Audit Committee
Charter which is in line with the requirements of the Stock Exchange of Thailand.
These responsibilities include reviewing of financial reports and internal control
systems, reviewing of potential conflict-of-interest transactions, and reviewing of
compliance with applicable laws and regulations. As at December 31, 2011 the
Company’s Audit Committee was composed of three members as follows:
In the course of 2011 the Committee held a total of 8 meetings, with attendance by
1. Dr. Oranuj Soongswang
2. Mr. Chanin Roonsamrarn
3. Mr. Wirutt Ruttanaporn
Committee Chairman (Independent Director)
Committee Member (Independent Director)
Committee Member (Independent Director)
the Company’s senior management, to perform the duties assigned by the Board.
One of the meetings was held in consultation with the External Auditors, without
the participation of Executive Directors. In summary, the Committee has during
the year conducted reviews of and given its opinion as to the following aspects:
1. Financial reporting: The Audit Committee has considered the External Auditors’
audit findings and reviews of quarterly and annual financial statements, while
providing the Management with recommendations on ensuring objectivity,
transparency and reliability of the Company’s financial reporting in accordance
with generally accepted accounting standards;
2. Internal control and internal audit: In 2011 the Audit Committee discussed
and reviewed the adequacy of the internal control system of the Siam Commercial
Samaggi Insurance PCL by evaluating the adequacy of the control framework’s
8
five elements, i.e. 1) control environment; 2) risk management; 3) control
activities; 4) information and communication; and 5) monitoring. The Committee
also reviewed internal audit findings and audit plans of the Audit Unit as well as
undertaking other tasks assigned to it. Members of the senior management
participated in the Committee’s meetings to provide clarification and to ensure
that recommendations were promptly implemented.
3.Regulatory compliance: The Committee has reviewed compliance by the
Company’s activities with the laws governing securities and exchange, regulations
of the Stock Exchange of Thailand (SET), regulations of the Office of the Insurance
Commission (OIC) and other applicable laws such as the Securities and Exchange
Act, regulations of the Office of the Securities and Exchange Commission, the
Public Limited Companies Act, the Non-life Insurance Act, the Revenue Code, the
Labor Laws and employment contracts, etc. The Committee has also considered
the 2011 report on the assessment of the Company’s procedure for investment in
other business in accordance with the OIC’s notification.
4. Disclosures of related-party and conflict-of-interest transactions: The Committee has reviewed and commented on related-party transactions and transactions
with potential conflict of interest as well as ensuring complete and accurate disclosure of such transactions according to the SET requirements. In this regard,
the Committee has provided its opinion on the report summarizing the Company’s
related-party transactions and has submitted its conclusion to the Board of Directors. The report indicates that: the Company has properly disclosed in detail,
in the notes to each quarterly financial statements, all related-party transactions
which had been duly audited by the external auditors; that such transactions were
carried out in the ordinary course of business according to regular trade terms
with the Company’s best interests taken into account; and that pricing policy for
the transactions was the same as those applicable to general clients. Details of
related-party transactions are set out under the section ‘Related-Party Transactions’ and in Note 30 to the Financial Statements: Transactions and Balances with
Related Persons/Parties.
9
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Report of the Risk Management Committee
Report of the Risk
Management Committee
5. Auditors: The Audit Committee has selected and recommended the appointment of external auditors as well as the fixing of audit fees, by submitting its opinion
and proposal to the Board for further presentation to and approval by shareholders.
The Company’s Risk Management Committee, which was established and
appointed by the resolution of Board meeting no. 10/2552 (2009) held on October
29, 2009, consist of:
The results of each Audit Committee meeting has been reported to the Board of
Directors. In performing its duties, the Committee has exercised prudence and
has been able to provide independent and objective opinion, without experiencing
any limitation in obtaining information, resources or cooperation from the Company.
• three members appointed from the Board, who are professionals wellinformed and knowledgeable about the organization’s overall risks;
• senior executives at the rank of group head and above, i.e. Managing
Director, and Head of Motor Insurance Group.
In conclusion, the Committee is of the opinion that the Company has pursued
good corporate governance as its guiding policy; that it has an adequately effective system of internal control and risk management; that there are no material
weaknesses nor related-party transactions which could lead to potential conflict
of interest; that all connected transactions are genuine, normal forms of business
transactions justifiably conducted in the Company’s best interests as per corporate policy; that there has been full compliance with regulatory requirements;
and that the financial statements for the year ended December 31, 2011 gives a
true and fair view of the Company’s financial position and have been prepared
in accordance with generally accepted accounting principles with adequate
disclosure of information.
The Committee has fulfilled its duties as delegated by the Board and in accordance
with the Risk Management Committee Charter. Such responsibilities are in line
with the Corporate Governance Guidelines for Insurers prescribed by the Office of
Insurance Commission, which include: setting risk management policies to cover
all main types of risk; formulating strategies consistent with risk management
policies; reviewing the adequacy of overall risk management policy and systems;
and reporting risk management performance so as to be improved and readjusted
to the established policies and strategies.
(Dr. Oranuj Soongswang)
Chairperson of the Audit Committee
10
As at December 31, 2011 the Risk Management Committee of the Siam Commercial
Samaggi Insurance PCL was composed of:
Members appointed from the Board
1. Mr. Chanin Roonsamrarn
Chairman of the Risk Management Committee
2. Mr. Rungruang Sukkirdkijpiboon
Member of the Risk Management Committee
Members appointed from the Management
3. Mr. Chiravuthi Bunyasiri
Managing Director
4. Mr. Prasan Limpipatanakul Head, Motor Insurance Group
11
The Siam Commercial Samaggi Insurance
I Annual Report 2011
During 2011, the Committee held a total of four meetings with the Risk Management
Unit, which has direct responsibility for the organization’s overall risk management
implementation. The Unit works under the supervision of Chief Risk Officer, while
reporting directly to the Board of Directors.
Over the past year, the Company has pursued the Enterprise Risk Management
(ERM) approach by implementing, in every area and level of its activities, all the
following 11 risk management policies approved by the Board.
1. Strategic Risk Management Policy
2. Underwriting Risk Management Policy
3. Credit Risk Management Policy
4. Liquidity Risk Management Policy
5. Investment Policy
6. Operational Risk Management Policy
7. Reputational Risk Management Policy
8. Business Continuity Management Policy
9. Affiliated Transactions Policy
10. Outsourcing Policy
11. Laundering Prevention and Counter Terrorist Financing Policy
Report of the Risk Management Committee
In 2011, therefore, the Company revised its risk management processes by developing contingency measures for possible events similar to the floods. These
measures include: adjusting premium rates to match increased risks; reducing
risks by setting sub-limits for natural disaster coverage; joining the membership
of the Disaster Fund; and controlling and monitoring risk accumulation. We are
thus confident that any future incident of this nature would have less impact than
that of the previous year.
In addition, there are plans to employ more quantitative techniques for risk management to ensure the assessment and control parts of the process will enable
prompt monitoring of risks. At the same time, the Company is also enhancing the
capacity of its risk management framework through the design of more efficient
and effective methods for assessing and controlling operational risks. The new
techniques will allow users at all levels to have a genuine understanding of the
risk management process while facilitating timely and appropriate management
of existing risks, thereby helping to create sustainable value for all stakeholders
of the Company.
Relevant training has also been provided to ensure that staff at all levels follow
a systematic process of risk management. Furthermore, overall risk tools have
been devised to serve as indicators giving early warnings of damage/losses. The
Company has raised risk management awareness to become part of its corporate
culture, while having in place the procedures for efficient risk management which
include control, monitoring and reporting of overall risk performance to the Board.
The massive floods in 2011 have produced a material impact on our operations
due to lack of statistics and experience. There have also been sweeping effects
on the non-life insurance and reinsurance industries.
(Mr. Chanin Roonsamrarn)
Chairman of the Risk Management Committee
12
13
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Report of the Human Resources
and Compensation Committee
The Human Resources and Compensation Committee of the Siam Commercial
Samaggi Insurance Public Company Limited has comprised four Directors, two
of whom are Independent Directors. Appointed for a three-year term, members
of the Committee during the reporting year were:
1. Mr. Payungsak
Chartsutipol Committee Chairman
(Independent Director) *
2. Mr. Chanin Roonsamrarn Committee Member
(Independent Director)
3. Miss Phanporn Kongyingyong Committee Member
4. Mr. Dechapiwat Na Songkhla Committee Member
As delegated by the Board of Directors, the Human Resources and Compensation
Committee has been responsible for considering and endorsing the Company’s
human resource management policies and for recommending related matters to
the Board, as described under the “Role, Duties and Responsibilities of the Board”
section of the Corporate Governance Report. During 2011, the Committee held
five meetings in total to consider and provide opinion on human resource management matters, which are summarized below.
1) Organizational structure review: The structure of internal management has been reviewed by the Committee to ensure appropriateness, clarity and
flexibility in inner workings.
2) In-house and out-of-house training: The Committee has given
guidance and recommendations on training courses, divided into:
Out-of-house training which covers management and general
training courses from operational to management levels, all set out
in a road map to give an overview of ongoing development of staff
at all levels.
In-house training which includes courses designed by the Company
in cooperation with external institutions and covers technical areas
aimed at improving staff’s skills and specializations from basic,
advanced to analytical levels.
Report of the Human Resources and Compensation Committee
3) Salary structure: The Committee has considered all appropriateness and
recommended developing a pay structure for business-integral specialized positions.
Taking account of a survey by Mercer of salaries in the non-life insurance market, the
recommendation for specialized salary revision is aimed at ensuring the Company’s
competitiveness in the industry.
4) Leadership program consultancy: The Committee has considered the
selection of consultants recommended for developing a champion of change program
for the Management. In this regard, the Company has selected the APG Group to
design and run this program, which will take about nine months, so that members of
the Management can develop their leadership skills continuously.
5) Involvement in corporate KPIs: The Company’s key performance indicators
(KPIs) are usually measured on an annual basis. For the past year, the process also
had participation of the Committee which offered opinion on the KPIs and assigned
weightings to ensure that the indicators be reviewed and made more clearly-defined
and appropriate.
6) Directors’ remuneration: The Thai Institute of Directors’ survey results
and industry data have been used as the basis for determining and recommending
appropriate remuneration of Directors to the Board and the shareholders.
7) Voice of the employee (VOE) survey: All factors of the survey findings
have been considered, as have the survey recommendations for improvement.
During the year, the Human Resources and Compensation Committee also provided the
unit(s) with human resource responsibility with direct guidance on personnel management so as to be applied within the organization as and when appropriate.
Chanin Roonsamrarn
Chairman of the Human Resources and Compensation Committee
* Note : Mr. Payungsak Chartsutipol resigned with effect from December 1, 2011.
14
15
The Siam Commercial Samaggi Insurance
Report of the Nomination Committee
I Annual Report 2011
Report of the Nomination
Committee
The Nomination Committee of the Siam Commercial Samaggi Insurance
Public Company Limited is currently composed of three Directors, one of
whom being Independent Director. With a three-year term of appointment
each, the members of the Committee during 2011 were:
1. Mr. Wiraj Na Songkhla
Committee Chairman (Director) *
2. Mr. Chanin Roonsamrarn Committee Member
(Independent Director)
3. Miss Phanporn Kongyingyong Committee Member (Director)
The Nomination Committee has been delegated by the Board to determine
the criteria and process for identifying and nominating, for approval of the
Board or of shareholders’ meeting, suitable candidates for appointment as
company directors, in ensuring objectivity and transparency. Over the course
of 2011, the Committee had one meeting to consider and endorse nominations
for independent and non-independent directorships and/or Board committee
memberships, vacated as a result of retirement/end of appointment, resignation or other reasons. Following a transparent identification and nomination
process, the Committee has ensured that the selected persons meet all
applicable statutory requirements and that they have the knowledge and
competences which can support the Company toward progress and promote transparency and good governance, while being able to fulfill the
duty of equally protecting the interests of all shareholders.
The Nomination Committee has reported the results of each of its meetings
to the Board of Directors. In the performance of its duties, the Committee
has always exercised prudence and independent judgment in meeting the
nomination objective of serving the organization’s best interests.
Nomination Committee
* Note : Mr. Wiraj Na Songkhla resigned with effect from May 4, 2011.
16
17
Board of Directors
Board of Directors
Khunying Jada Wattanasiritham
Khunying Jada
Wattanasiritham
Position
- Chairman of the Board
- Independent Director
Mr. Wiraj
Na Songkhla
Education / Training
- MA Economic Development, Williams College, Massachusetts, USA
- BA and MA Natural Sciences & Economics, University of Cambridge, UK
Dr. Oranuj
Soongswang
Mr. Chanin
Roonsamrarn
Mr. Payungsak
Chartsutipol
Mr. Dechapiwat
Na Songkhla
Ms. Phanporn
Kongyingyong
Mr. Wirutt
Ruttanaporn
Mr. Rungruang
Sukkirdkijpiboon
Other Position
- Director, and Member of the Executive Committee
: The Siam Commercial Bank PCL
- Chairman and Independent Director
: Siam Commercial New York Life Insurance PCL
- Independent Director, and Member of the Audit Committee
: Minor International PCL
- Director: Siam Piwat Co., Ltd.
- Director: Siam Piwat Holding Co., Ltd.
- Chairman: Thai Asset Management Corporation
- Director: Ramathibodi Foundation
- Director: Siam Commercial Foundation
- Director: Thanpuying Dusdimala Foundation
- Director: The Kenan Institute Asia
- Director: King Vajiravudh Memorial Foundation Under the Patronage of His Majesty the King
- Director: Raj Pracha Samasai Foundation Under the Patronage of His Majesty the King
- Director: The Council of Srinakharinwirot University
- Trustee: Asian Institute of Technology Board of Trustees
- Member: Advisory Council of SASIN Graduate Institute of Business Administration,
Chulalongkorn University
- Director: Foundation of HRH Somdejphramahitlathibesr Adulayadejvikrom the Royal Father
- Chairman: Books for Thailand Foundation
Mr. Chiravuthi
Bunyasiri
18
19
The Siam Commercial Samaggi Insurance
Mr. Wiraj Na Songkhla
Dr. Oranuj Soongswang
Position
- Vice Chairman
- Chairman of the Nomination Committee
Position
- Independent Director
- Chairman of the Audit Committee
Education / Training
- L.L.B., Thammasat University
- Master of Business Administration,
Temple University, USA
- AMP, Harvard University, USA
Education / Training
- Monitoring the Internal Audit Function 7/2010
- Doctor of Business Administration (Information Systems), Mississippi State University, USA
- Master of Accounting (Information Systems),University of Florida, USA
- Master of Accounting, The Ohio State University, USA
- Bachelor of Accountancy (Honors), Chulalongkorn University
- Directors Certification Program 22/2002
- Audit Committee Program 19/2007
- DCP Refresher Course 5/2007
Other Position
- Honorary Chairman: Manabhan. Co.,Ltd.
- Honorary Director: The Thai Chamber of Commerce
- Honorary Member : The Rotary Club of Patumwan
20
Board of Directors
I Annual Report 2011
Other Position
- Assistant Professor,Faculty of Commerce and Accountancy
: Chulalongkorn University
- Member of a subcommittee on Scrutinizing CPA Qualifications
: Federation of Accounting Professions Under the Royal Patronage of His Majesty the King
- Director: The Transport Co.,Ltd.
- Director: A.I.M.S. Co.,Ltd.
21
The Siam Commercial Samaggi Insurance
Board of Directors
I Annual Report 2011
Mr. Chanin Roonsamrarn
Position
- Independent Director
- Chairman of the Risk Management Committee
- Member of the Audit Committee
- Member of the Human Resource and Compensation Committee
- Member of the Nomination Committee
Education / Training
- Master of Science (Business Administration), Fort Hays State University, Kansas, USA
- Directors Certification Program 15/2002
- Chairman 2000 6/2002
- Audit Committee Program 9/2005
Other Position
- Independent Director,
Member of the Audit Committee,
Member of the Remuneration Committee, and
Member of the Nomination Committee
: Thai Reinsurance PCL
- Independent Director,
Member of the Audit Committee and
Member of the Remuneration Committee
: Home Product Center PCL
Mr. Payungsak Chartsutipol
Position
- Independent Director
- Chairman of the Human Resource and Compensation Committee
- Member of the Risk Management Committee
Education / Training
- Bachelor of Engineering (Electrical Engineering), Chulalongkorn University 1975
- Certificate of Management Development Program, North Western University
Other Position
- Chairman: The Federation of Thai Industries
- Deputy Secretary General, Secretary-General of the Secretariat.
: The Federation of Thai Industries, year term 2004-2006
- Vice Chairman
: The Federation of Thai Industries, year term 2006-2010
- Chairman of the steel industry
: FTI year term 2006 -2010
- Chairman of the cable industry
: Federation of Thai Industries and the Institute of SMI.
- Chairman of the Coordinating Committee for Industrial Environmental Management.
Pollution Control District, Rayong Province.
- President, Asean Iron and Steel Industry Federation (AISIF)
- Board of Directors, Southeast Asia Iron and Steel Institute(SEAISI)
- Member of SEAISI Finance Committee Meeting
- The Joint Standing Committee on Commerce, Industry and Banking
- The Joint Standing Committee on public and private sectors to solve economic problems. (Office of the National Economic and Social Development).
- Committee resolves to comply with Section 67 paragraph two of the Constitution of
the Kingdom of Thailand.
- Advisory Committee Sub-Committee on Education Policy infrastructure and fund
infrastructure The Committee on Economics. The Senate Commerce and Industry.
- Director: Iron and Steel Institute of Thailand.
- Member of the Mold Industry Development Committee
Remark : * Mr. Chanin Roonsamrarn re-appointed Directors by the 64th Annual
General Meeting of the Shareholders on March 31, 2010.
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23
The Siam Commercial Samaggi Insurance
Board of Directors
I Annual Report 2011
- Director: Institute for Small and Medium Enterprises Development
- Director: Thailand Productivity Institute
- Director: National Innovation Agency (NIA)
- Director : Thai - German Institute
- Steering committee
: Sirindhorn International Institute of Technology Thammasat University
- Executive Committee
: Faculty of Engineering. Chulalongkorn University. Types of external experts.
- Steering committee
: Chulalongkorn University Engineering Alumni, 2008-2009
- Committee for selecting the deserving.
Bai Pho Business Awards by Sasin.
- Director : Trade Competition Commission
- Director : Project potential workers in business establishments to prevent and
mitigate the problem lay
- Extraordinary Commission to coordinate the participation and the referendum.
The Committee on Industry and Tourism. National Legislative Assembly
- Board Sub-Committee on Water Resources, Committee on Natural Resources
and Environment.
- Committee imports iron and steel division of the quota. The Economic Partnership
Agreement - Thailand, Japan
- Sub-Committee consider the price bars and structural steel sections.
(Office of the Central Committee that the price of goods and services.
Department of Internal Trade).
- Committee to consider the technical details of steel products.
(Office of Safeguards and counter trade. Department of Foreign Trade).
- Sub-committee to develop a sustainable steel industry
- Sub-Committee on Safety and Risk Management nanotechnology
-Consultant Industrial Standards Committee
- Advisory Committee budget projects empower workers in the workplace to
prevent and mitigate network stations for dismissal
- Advisory Committee Sub-Committee on Education. Tracking station network for solving
the basic economic structure. Energy resources and transport infrastructure and investment
- Commission Working Group on Pollution Control in Rayong
- Working to national library. Ministry of Industry
- Working Group on Investment Promotion. Trade and Tourism Board for
a Chinese businessman. From the Business Association Great Chinese around the world
- Working Group on Pre Screening Criteria and framework for a review of selected
borrowers credit
- Working groups and policy advice relating to compliance Cement of Thailand
24
Remark : * Mr.Payungsak Chartsutipol was appointed Director, Member of the Risk Management Committee and Member of the Human Resources Committee by resolution of the Board
Meeting No. 7/2010 held on July 29, 2010, to replace Mr.Rungruang Sukkirdkijpiboon who resigned
with effect from July 14, 2010.
25
The Siam Commercial Samaggi Insurance
Board of Directors
I Annual Report 2011
Mr. Wirutt Ruttanaporn
Position
- Independent Director
- Member of the Audit Committee
Education / Training
- MBA Michigan State University, USA
- Bachelor of Commerce (Commercial and Accounting), Thammasat University
- National Defence College, Joint Public Private Course 377
- Directors Certification Program 22/2002
Other Position
- Chairman: E-Saan Sugar Industry Co.,Ltd.
- Chairman: Singburi Sugar Industry Co.,Ltd.
- Chairman : The Siam Industrial Credit PCL
- Independent Director, and Member of the Audit Committee
: Siam Commercial New York Life Insurance PCL
- Independent Director: Siam Commercial Leasing PCL
Mr. Dechapiwat Na Songkhla
Position
- Director
- Member of the Human Resource and
Compensation Committee
Education / Training
- Master of Science (National Development & Project Planning), University of Bradford, UK
- Bachelor of Science (Mathematics & Economics), University of Surrey, UK
- Director Accreditation Program 45/2005
Other Position
- Director of National Security Budget Preparation Office,
: Bureau of the Budget, Office of The Prime Minister
- Chairman: Manabhan Co.,Ltd.
- Member of the Executive Committee
: National Metal and Materials Technology Center, Thailand
Remark : * Mr. Dechapiwat Na Songkhla were appointed Member
of the Human Resources and Compensation Committee by resolution of the Board
Meeting No. 10/2010 held on October 28, 2010.
26
27
The Siam Commercial Samaggi Insurance
Ms. Phanporn Kongyingyong
Position
- Director
- Member of the Human Resource and
Compensation Committee
- Member of the Nomination Committee
Education / Training
- Master of Business Administration, Assumption University
- Assumption Business Administration College, BA Accounting
Other Position
- FEVP, Branch network, The Siam Commercial Bank PCL,
Personal Banking Business Group.
Remark : * Miss Phanporn Kongyingyong was appointed Director,
Member of the Nomination Committee and Member of the Human Resources
Committee by the 64th Annual General Meeting of the Shareholders on March 31,
2010, to replace Mr. Praves Suttirat who resigned with effect from March 31, 2010.
28
Board of Directors
I Annual Report 2011
Mr. Rungruang Sukkirdkijpiboon
Position
- Director
- Member of the Risk Management Committee
- Consultant, Investment Committee
Education / Training
- MBA, University of Arkansas, at Little Rock, Arkansas, USA 1996
- BA (Economics), Thammasat University
Other Position
- FEVP, Division Head, Wealth The Siam Commercial Bank PCL
Remark : * - Mr.Rungruang Sukkirdkijpiboon was appointed Director, Member of the Risk Management Committee and
Member of the Human Resources Committee and Authorized Director by resolution of the Board Meeting No. 4/2010
held on April 29, 2010, to replace Mr. Adisorn Sermchaiwong who resigned with effect from April 29, 2010.
- Mr.Rungruang Sukkirdkijpiboon was appointed Director, Member of the Risk Committee and Authorized Director by
resolution of the Board Meeting No.10/2010 held on October 28, 2010, to replace Mr. Sivaporn Dardarananda who
resigned with effect from October 27, 2010.
29
The Siam Commercial Samaggi Insurance
Mr. Chiravuthi Bunyasiri
Position
- Managing Director
Education / Training
- Master of Business Administration, University of Dallas, USA
- Bachelor of Commerce (Management), Chulalongkorn University
- Chairman 2000 8/2003
- Directors Accreditation Program 29/2004
Other Position
- None -
30
Board of Directors
I Annual Report 2011
Mr. Prachitr Yossundara
Position
- Honorary Chairman
Mr.Prachitr Yossundara was a Honorary Chairman
by the 651st Board of Directors’ Meeting on April 29, 2003.
Education / Training
- B.Com, Birmingham University
Other Position
- Chairman of The Samaggi Insurance PCL. Since 1984-2003
Remark : * Mr.Chiravuthi Bunyasiri re-appointed Directors by the
64th Annual General Meeting of the Shareholders on March 31, 2010.
31
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Management Structure
Mr. Chiravuthi
Bunyasiri
Board of Director
Human Resource and Compensation Committee
Audit Committee
Mr. Sunchai
Viraseranee
Risk Committee
Nomination Committee
Executives
Audit
Managing Director
Ms. Worraya
Jaruwongpak
Ms. Eamorn
Xuto
Risk Management
Office of the Company Secretary
Office of the Managing Director
Business Group
Non-motor Insurance Group
Motor
Insurance Group
Bancassurance Business
Commercial Line
Motor Claims
Business Relation
Personal Line
(Non-motor)
Corporate & SMEs
Legal
Center of Excellence
Support Group
Management Information System & Analytics
Finance
Motor Underwriting
Product Development
Operations
Branch Business
Pricing & Actuarial
Human Resource
Ms. Nittaya
Piriyathamwong
Mr. Monson
Marukatat
Brokers & Agents
Mr. Wachira
Chuaychoo
Ms. Wanna
Phalajivin
Ms. Orawan
Vorapanya
Mr. Prasan
Limpipatanakul
Mr. Surachai
Lertsittichai
Mr. Alongkorn
Plangkull
Andrew ChunWai Leung
Project Management
Office
Alternative Distribution
Mr. Kriengkrai
Tangjarukij
32
Ms. Waraporn
Pancharoen
33
The Siam Commercial Samaggi Insurance
Mr. Chiravuthi Bunyasiri
Position
Managing Director
Education
- Master of Business Administration, University of Dallas, USA
- Bachelor of Commerce (Management), Chulalongkorn University
- Chairman 2000 Class 8/2003
- Directors Accreditation Program Class 29/2004
Working Experience
October 2004 – Present : Managing Director The Siam Commercial Samaggi Insurance PCL
2004 – September 2004: Executive Vice President, Special Assets Corporate Sector
The Siam Commercial Bank PCL
1999 - 2004 : Senior Vice President, Special Assets Corporate Sector
The Siam Commercial Bank PCL
1996 - 1999 :
Senior Vice President, International Banking Facilities
& Financial Institution The Siam Commercial Bank PCL
34
Executives
I Annual Report 2011
Mr. Prasan Limpipatanakul
Position
Senior Executive Vice President,
Head, Motor Insurance Group
Education
- Master of Business Administration, Kasetsart University
- Bachelor of Accounting, Chulalongkorn University
Working Experience
June 2009 - Present :
2007 - 2009 :
2002 - 2006 :
2001 - 2002 :
1999 - 2000 :
Head, Motor Insurance Group
The Siam Commercial Samaggi Insurance PCL
Executive Advisor
Siam Ball Sport Factory Co.,Ltd.
Executive Director & Executive Adviser
Siam Unisole Co.,Ltd.
Executive Director & Executive Adviser
Wongpaitoon Group PCL
Managing Director
K.M. Foam Co.,Ltd.
35
The Siam Commercial Samaggi Insurance
Executives
I Annual Report 2011
Mr. Wachira Chuaychoo
Ms. Nittaya Piriyathamwong
Position
Senior Executive Vice President
Position
Senior Executive Vice President,
Head, Business Group
Education
- Master of Public and Private Management,
- The National Institute of Development Administration
- Bachelor of Accountancy, Chulalongkorn University
Working Experience
July 2011 - Present :
2007 – June 2011:
1996 - 2006 :
1992 - 1996 :
Head , Business Sector
Head , Business Development Sector
The Siam Commercial Samaggi Insurance PCL
Fire Insurance Department Manager/
SVP, Marketing Department 4 The Deves Insurance PCL
Branch Manager The Siam Commercial Bank PCL
Education
- Master of Science in Financial Mathematics, University of Exeter, United Kingdom
- Master Degree in Population and Social Research granted
by the William and Flora Hewlett Foundation, Mahidol University
Working Experience
December 2011 -Present :
Senior Executive Vice President
The Siam Commercial Samaggi Insurance PCL
October 2004 – September 2011 : Secretary – General
The Insurance Premium Rating Bureau
March 2002 – May 2004 :
Head of Network Management
The Knowledge Management Institute,
The Thailand Research Fund
October 1995 – February 2002 : Vice President – Research, Planning and Special Affairs
Thai Reinsurance Public Co., Ltd.
July 1990 – June 1995 :
Researcher, Level 6
Institute for Population and Social Research, Mahidol University
Remark: Ms.Nittaya Piriyathamwong joined the Company on December 1, 2011.
36
37
The Siam Commercial Samaggi Insurance
Mr. Sunchai Viraseranee
Position
Executive Vice President,
Head, Corporate and SMEs Sector
Education
- Master of Business Administration, Tarleton State University, USA
- Bachelor of Science (B.S), Kasetsart University
Working Experience
2005 – Present :
2004 – 2005 :
1999 – 2004 :
38
Executives
I Annual Report 2011
Head, Corporate and SMEs Sector
Assistant Managing Director (Business Development 2)
The Siam Commercial Samaggi Insurance PCL
Vice President, Branch Business Department
UOB Radanasin Bank PCL
Ms. Worraya Jaruwongpak
Position
Executive Vice President,
Head, Bancassurance Business Sector
Education
- Master of Business Administration, Kasetsart University
- Bachelor of Economics, Chiangmai University
Working Experience
2006 – Present :
2005 :
2001 – 2004 :
1998 – 2000 :
1997 :
Head, Bancassurance Business Sector
Senior Vice President, Bancassurance & Retail Business Department
Vice President, Business Support Department
Manager, Financial Division
Manager, Motor Underwriting Division
The Siam Commercial Samaggi Insurance PCL
39
The Siam Commercial Samaggi Insurance
Ms. Eamorn Xuto
Position
Senior Vice President,
Head, Broker & Agent Sector
Education
- Bachelor of Art (Political Science) 2nd Hons., Ramkhamhaeng University
Working Experience
2007 – Present :
2004 – 2007 :
1995 - 2004 :
1985 - 1995 :
40
Executives
I Annual Report 2011
Head,Broker & Agent Sector
The Siam Commercial Samaggi Insurance PCL
Senior Manager Commercial Line
Generali Insurance (Thailand) Co.,Ltd.
Deputy Manager Bancassurance
AXA Insurance PCL
Assistant Manager Marine Underwriting Division
Thai Commercial Insurance PCL
Ms. Orawan Vorapanya
Position
Executive Vice President,
Head, Commercial Line Sector
Education
- Master of Business Administration, Campbell University, 1987, North Carolina, USA
- B.A. Marketing, Assumption University, 1985, Bangkok, Thailand
Working Experience
May 2010 – Present :
1999 – 2010 :
1998 – 1999 :
1992 – 1998 :
1988 – 1992 :
Head, Commercial line Sector
The Siam Commercial Samaggi Insurance PCL
EVP, Head of International & Corporate SBU
ThaiSri Insurance Co Ltd
Underwriting Manager
Guardian Insurance (Thailand) Co Ltd
Underwriter (P&C)
Chubb Insurance (Thailand) Co Ltd
Property Underwriter
Casualty Underwriter
Engineering Underwriter
New Hampshire Insurance (Thailand Branch)
41
The Siam Commercial Samaggi Insurance
Mr. Surachai Lertsittichai
Position
Executive Vice President,
Head, Personal Line Sector
Education
- Master of Business Administration (Finance), Suffolk University, Boston, USA
- Bachelor of Economics (Cum Lauded Honor), University of Massachusetts, Boston, USA
- Associate Degree of Business, Yeronga College, Brisbane, Australia
Working Experience
October 2010 – Present :
1998 – 2010 :
1996 – 1997 :
42
Executives
I Annual Report 2011
Head, Personal Line Sector
The Siam Commercial Samaggi Insurnace PLC
AVP II Accidental & Health
American international Assurance Company Limited
Project Manager
Grand Village
Mr. Alongkorn Plangkull
Position
Senior Vice President,
Head, Motor Claim Sector
Education
- Ramkhamhaeng University, Bachelor of Law
Working Experience
October 2010 – Present :
2008 – 2010 :
2006 – 2008 :
2005 – 2006 :
2003 – 2005 :
2000 – 2003 :
1992 – 2000 :
Head, Motor Claim Sector
Manager, Claim Consideration Head Office/Branch
Manager, Motor Claim
Director, Motor Claim
Deputy Director, Motor Claim
Manager, Motor Claim
Deputy Manager, Motor Claim
The Siam Commercial Samaggi Insurance PCL
43
The Siam Commercial Samaggi Insurance
Mr. Monson Marukatat
Position
Executive Vice President,
Head, Risk Management Sector
Acting Head, Audit Sector
Education
- Master of Business Administration, Indiana University, USA
- Master of Professional Accounting, University of Southern Queensland, Australia
- Bachelor of Arts (Economics), Thammasat University
- Certified Internal Auditor
- Associate in Professional Risk Management
Working Experience
August 2010 – Present :
2005 – July 2010 :
2003 – 2004 :
2002 – 2003 :
2000 – 2001 :
44
Executives
I Annual Report 2011
Head, Risk management Sector
Acting Head, Audit Sector
Head, Non-Motor Insurance Sector
Assistant Managing Director (Business Administration)
Senior Manager, Audit Department
Manager, Planning and System Development Department
The Siam Commercial Samaggi Insurance PCL
Ms. Wanna Phalajivin
Position
Executive Vice President,
Head, Finance Sector
Education
- Master of Business Administration, Thammasat University
- Bachelor of Accounting, Thammasat University
Working Experience
2005 – Present :
2002 – 2004 :
1985 – 2002 :
Head, Finance Sector
Manager, Financial Department
The Siam Commercial Samaggi Insurance PCL
Manager, Financial and Accounting Department
Bangkok Union Insurance PCL
45
The Siam Commercial Samaggi Insurance
Executives
I Annual Report 2011
Mr. Kriengkrai Tangjarukij
Mr. Andrew Chun-Wai Leung
Position
Executive Vice President,
Head, Operations Sector
Position
Executive Vice President
Education
- Master of Science in Computer Science (Computer & Engineering Management),
Assumption University
- Bachelor of Arts (Economics), Thammasat University
Education
- Bachelor of Economics (Actuarial Studies), Macquarie University
- Diploma in applied Finance and Investment, Securities Institute of Australia’ Graduate
- Fellow of the Institute of Actuaries Australia
- Master of Applied Statistics, Macquarie University
Working Experience
2005 – Present :
2002 – 2004 :
1997 – 2001 :
1997 :
Head, Operations Sector
Manager, Planning and System Development Department
Deputy Manager, Planning and System Development Department
Deputy Manager, Claim Department
The Siam Commercial Samaggi Insurance PCL
Working Experience
19 December 2011 -Present :
June 2009 – September 2011 :
October 2007 – June 2009 :
April 2006 – September 2007 :
March 2005 – March 2006 :
Executive Vice President
The Siam Commercial Samaggi Insurance PCL
Chief Actuary
The Insurance Premium Rating Bureau, Thailand
National Manager, Actuarial Services
Calliden Group, Australia
Pricing and Porfolio Manager
Calliden Group, Australia
Product Actuary, Workers’ Compensation
QBE Insurance, Australia
Remark: Mr. Andrew Chun-Wai Leung joined the Company on December 19, 2011.
46
47
The Siam Commercial Samaggi Insurance
Business And Industry
I Annual Report 2011
Ms. Waraporn Pancharoen
Business And Industry
Position
Executive Vice President,
Company Secretary
Education
- Master of Business Administration, The National Institute of Development Administration
- Bachelor of Science, Mahidol University
Working Experience
March 2008 – Present :
2005 – February 2008 :
1997 – 2004 :
1992 – 1997 :
48
Company Secretary
Secretary to Board of Directors
Assistant Managing Director (Operations)
Senior Manager, Information System Center
The Siam Commercial Samaggi Insurance PCL
Business Profile
The Siam Commercial Samaggi Insurance Public
Company Limited, a subsidiary of the Siam
Commercial Bank (SCB) Group, was founded
in 1947 and has successfully established as a
non-life insurance operator for over 64 years.
The Company provides a wide range of non-life
insurance services, categorized broadly into
two groups: (1) personal insurance products
which include fire insurance, motor insurance,
personal accident insurance and health
insurance; (2) corporate insurance products
which consist of marine insurance and other
miscellaneous insurance, including all-risks
insurance, engineering insurance, trade credit
insurance, directors and officers insurance,
products liability insurance, etc. All products
and services are offered through a nationwide
network of branch offices, agents, brokers and
financial institutions, as well as the main channel
of SCB branches.
49
The Siam Commercial Samaggi Insurance
Business And Industry
I Annual Report 2011
• Business Mix
Domestic Premiums Growth
Under the retail market expansion policy targeted at private clients, the Company was, in 2011, able
to increase its business in all lines of insurance products. Our proportion of personal business to
corporate business for the year was 85 : 15, compared with the industry’s 80 : 20.
Instrumental to disaster mitigation, the non-life
insurance market continued to see domestic
premiums trending upwards with 11.9% growth
in 2011. A total of 139,835 million baht direct
premiums were written by 68 non-life insurance
operators, consisting of 58 domestic companies,
Company’s and Industry’s Business mix in 2011 and 2010
2011
2011
5 branches of foreign insurers and 5 health
insurers. For 2011, the Company ranked 12th
for direct premiums, reporting total gross
premiumsof 3,404.0 million baht or a 15.6%
increase from 2,945.0 million baht in the
previous year.
Premiums Growth Rates in 2011
28.1%
2010
15.6%
2010
23.6%
6.0%
Industry's
Company's
PA & Health
6.8%
11.3%
11.9%
Fire
11.5%
Motor
Marine
All-risks, Engineering
& Others
2.8%
Fire
PA & Health
Motor
9.1%
11.9%
5.3%
Total
All-risks, Engineering & Others
Marine
Industry's
Company's
Source: Statistics of the Office of the Insurance Commission (OIC) and the Company’s financial statements
Source: Statistics of the Office of the Insurance Commission (OIC) and the Company’s financial statements
50
51
The Siam Commercial Samaggi Insurance
Business And Industry
I Annual Report 2011
• Personal Insurance Products
In 2011, the overall industry continued to register
strong expansion in the personal products
sector, as shown in the 23.6% growth in personal
accident and health premiums, and increases
of 11.3% and 2.8% in motor and fire premiums,
respectively. During the year, the Company’s
personal line business also expanded, with
growth rates remarkably higher than those of
the industry for certain categories, i.e. 28.1%
increase in personal accident and health
premiums, followed by 11.5% and 11.9%
growth in motor and fire premiums. Details of
all financial performance are given in Note 23
to the Financial Statements.
We have retained our position as one of the
leading providers of retail insurance services
by offering better coverage and solutions that
cater to all client types. Continuing to expand its
personal line business through SCB’s countrywide network of branches, the Company has
also been one of the major domestic insurers to
offer fire insurance with flood protection to the
Bank’s home loan customers, thereby helping
to alleviate the damage suffered by more than
15,000 clients from the recent floods. In addition,
we have improved our internal processes of
motor underwriting and motor claims management
to achieve efficiency and stable profitability.
• Corporate Insurance Products
The industry’s corporate line business, however,
reported relatively less strong growth compared
to the personal sector, with 6.0% increase in
marine premiums, and an aggregate increase
of 9.1% in premiums from all-risks, engineering
and other miscellaneous insurance including
aviation and mega-project underwriting. The
Company recorded 6.8% growth in marine
premiums, and a combined 5.3% increase in
all-risks, engineering and other miscellaneous
In 2011, the Company’s processes of underwriting
and risk assessment underwent improvement
by engineering experts. There was also streamlining of our claims management/procedures,
while staff were given specialized training to
develop their competences in better supporting
the provision of
Other Management Enhancements
The Company has developed approaches to
driving each area of its operations to ensure
consistency with corporate business expansion.
Such across-the-board improvements are
aimed at achieving stable and sustainable
growth in overall performance. Our work on
different aspects of management and organizational development during 2011 can be
summarized as follows.
• Organizational reinforcement
through specialized development:
Our staff have been provided with specialist
training to enhance their actuarial and risk
management skills and expertise.
• Continuous strengthening of enterprise risk management: The Company
52
premiums.
has implemented the enterprise risk management guidelines by applying them to all areas
of practices. The implementation is in line with
the Bank’s consolidated supervision policy and
requirements, which cover risk management
policy guides for credit risk, liquidity risk,
operational risk and reputational risk.
• Recruitment and development of
management personnel for longterm strategic planning towards
stable growth: The Company has recruited
new management-level members, who are
skilled and experienced in actuarial pricing
and practices – a profession rarely found in
Thailand.
53
The Siam Commercial Samaggi Insurance
Management Analysis
I Annual Report 2011
Management Analysis
Future Plans
We have formulated long-term strategies to support future development, as summarized below:
• Realigning organizational structure to bolster
the Company’s position and its strength in the
areas of underwriting, claims management,
product development, as well as actuarial and
risk management, while raising the standards
of claims services;
• Enhancing business intelligence capability
and boosting internal process efficiency in
preparation for future market liberalization;
• Maintaining collaboration with the Bank to
54
create value added benefits by developing
insurance products that cater to each client
type;
• Enhancing cooperation with major partners
for each product area, and exploring non-bank
channels of business;
• Increasing capital for financial strength and
introducing risk-based capital allocation to
efficiently monitor performance and shareholder
returns from major product segments.
55
The Siam Commercial Samaggi Insurance
Management Analysis
I Annual Report 2011
Financial position and capital adequacy ratio
• Assets
As of December 31, 2011, the total assets
of the company was 17,111 million baht, an
increase of 242.6 % from that of the preceding
year. There was an impact of severe flooding
shown in Reinsurance receivables and assets
of 11,947 million baht as detailed in Note 3 of
Notes to financial statements. The total investment
has increased by 16.7% to 3,995 million baht.
The investment structure of the company is
consisting of low-risk assets such as bonds,
investment units, treasury bills, lottery savings,
and fixed deposits and bank deposits with
investment return of 3.2%.
3,995
3,422
2,952
2011
2010
The net accrued insurance premium income of
the company has declined by 4%, compared
with that of 2010. As of December 31, 2011,
the net accrued insurance premium income was
136 million baht as detailed in Note 7 of Notes to
financial statements since the company has arranged the regulation on collection of insurance
premium with strict enforcement in accordance
with the guidelines and criteria of the Office of
56
2009
Cash and deposits at
financial institutions
Loans
Unit trusts
Bill of exchange and
Promissory notes
Premium savings
certificates
Debentures
Equity
Treasury bills
Bonds
Insurance Commission (OIC).
• Liabilities and Stockholders’
equity
As of December 31, 2011, the total liabilities
have registered at 15,935 million baht, an
increase of 384.0% from that of the preceding
year, including insurance premium reserve not
recognized as revenue for 1,579 million baht,
an increase of 10.9%, and revenue received in
advance for long-term insurance policy of 885
million baht, an increase of 43.9%. While the
loss reserves and outstanding claims increased
by 1538.6% which impacted from the flood
crisis. There was no significant change in
other items.
January 1, 2013.
Nevertheless, the flood crisis last year has
caused significantly more losses than those
incurred from normal insurance underwriting.
The OIC has therefore issued a notification
dated March 8, 2012 re: Types and Categories
of Capital including Capital Calculation Criteria
and Procedures for Non-life Insurance Companies
(No. 2), B.E. 2555 (2012). The announcement
exempts non-life operators from incorporating
flood claims reserves in their calculation of
insurance-risk-based capital, while also easing
some other criteria which may concern non-life
insurers’ capital calculation.
The total stockholders’ equity was 1,176 million
baht, a decrease of 30.9% from that of the
preceding year, due to an impact of the severe
flooding. As of December 31, 2011, the Companyhas shown the net loss of 282 million baht.
According to the capital adequacy calculation
prescribed by OIC’s latest requirement, the
risk-based capital ratio of the Company was
392.7% (unaudited, as of December 31, 2011).
• Capital Adequacy
The company was able to maintain its capital
adequacy position in accordance with the OIC’s
requirement. Since September 1, 2011 the OIC
has imposed, on all insurance companies, a
risk-based capital ratio of not less than 125%
which will be adjusted up to 140% effective
To ensure the Company’s business preparedness, the Extraordinary General Meeting No.
1/2555 (2012) resolved to approve the Company to increase its registered capital by 660.0
million baht through a rights offering to existing
shareholders. The funds from the capital
increase will be used as working capital for our
future operations.
In addition, the company has deferred tax assets of 275 million baht, an increase of 36 million
baht from that of 2010. Such transaction is the
difference of income tax between accounting
standards and actual tax paid under the criteria
provided by the Revenue Department as detailed in Note 12 of Notes to financial statements.
57
The Siam Commercial Samaggi Insurance
Management Analysis
I Annual Report 2011
Operating results
With regard to 2011 operating results, the
Company recorded premiums written totaling
3,404.0 million baht, or a year-on-year rise of
15.6% as set out in Note 23 to the Financial
Statements. Net earned premiums for the
year went up by 7.2% to 2,486.0 million baht.
Our normal operations reported underwriting
expenses of 2,372.0 million baht, thus making
an underwriting profit of 201.0 million baht,
or 26.7% increase over 2010. After taking
investment income of 118.0 million baht into
account, the Company had a net profit before
tax of 337.0 million baht, an 11.0% increase on
the previous year.
However, the Company has suffered the effects
of the great floods occurring toward end of
2011. We have estimated claims from the disaster
to be 11,952.0 million baht in total, of which
607.0 million baht would be net claims. These
loss estimates, certified by internationally
recognized actuaries, has resulted in the Company reporting an underwriting loss of 406.0
million baht and a net before-tax loss of 270.0
million baht. After taking account of 12.0 million
baht income tax following adjustments of
deferred taxation rates from 30% to 23% and
20% as detailed in Note 28 to the Financial
Statements, the Company posted a net loss of
282.0 million baht, or loss per share of 3.11 baht.
Dividend policy and return
on stockholders’ equity
The dividend policy of the company is to pay
back the stockholders once a year at least
50% of the net profit; and such policy has been
followed consistently every year. However,
the company is required to set aside the net
profit as a reserve for at least 5% of the net
profit deducted by retained losses (if any) until
such reserve has reached 10% of its registered
capital in accordance with Article 115 of the
Limited Public Company Act and Clause 60 of
the regulations of the company.
In 2011, the return on equity was (19.6%) resulting
from the net loss of 282 million baht; while in
2010 the return on equity was 16.4% generated
from the net profit of 278 million baht.
Liquidity
Under the OIC’s requirements, liquidity ratio
is computed by comparing all liquid assets to
claims reserves and outstanding claims gross
of reinsurance recoverables. As at December
31, 2011 the Company had a liquidity ratio,
gross of reinsurance receivables, of 25.6%
by comparison with the 2010 ratio of 455.9%.
However, after taking into account reinsurance
recoverables, the ratio would be 360.8%. This
is because over 90% of the loss estimate is
cushioned by reinsurance arrangements, either
58
in the form of facultative reinsurance or treaty
reinsurance. More than 80% of the claims
estimate represent risks ceded to international
reinsurers with –A and above credit ratings by
Standard & Poor’s or A.M. Best. Therefore, the
Management is of the opinion that: the above
ratio remains at a level manageable through
scrutiny of reinsurance conditions as well as
recovery of flood losses from reinsurers; and
that the liquidity of the Company is sufficient
for its business.
59
The Siam Commercial Samaggi Insurance
Management Analysis
I Annual Report 2011
Risk Factors
• Preventive and mitigation measures
The following are potential risk factors which could materially affect our operations
and invested capital.
1. Catastrophe Risk
The occurrences of large-scale natural disasters
nowadays are considered a critical factor that
can impact upon the Company’s business.
Type of
underwriting
Fire insurance
Each line of our insurance underwriting provides
differing types of coverage, with respective protection against natural catastrophes as follows.
Type of catastrophe
eventตภัยธรรมชาติ
ประเภทของมหั
Earthquake
Tsunami
Flood
-
Motor insurance
covered only under 1stclass policy
covered only under 1stclass policy
covered only under 1stclass policy
Miscellaneous insurance
• Personal accident
insurance
covered
covered
covered
• Property insurance
covered
covered
covered
• Engineering insurance
covered
covered
covered
-
-
-
2. Reinsurance Risk
As part of our business, we seek reinsurance
coverage from both domestic and foreign
reinsurers to support the expansion of our
underwriting lines. The practice is necessary
because our retention capacity is limited while
we have to ensure appropriate sharing/spreading of the risks assumed. As of December 31,
2011, the Company had a reinsurance-to-gross
premiums ratio of 21.6%, with cessions during
the year obtained through the arrangements of
treaty reinsurance and facultative reinsurance.
Note: Each type of coverage shall be based essentially on the insurance policy schedule.
Possible exposures in this area include 1) insufficiency of reinsurance scheme against the
catastrophe riks; 2) the events of reinsurers
defaulting on claims payments; or 3) reinsurers’ lack of financial stability. Procedures for
60
managed the catastrophe risk by providing
suitable reinsurance cessions of catastrophe
risks in the amount of 1,500 million baht for
the year 2011 and up to 2,000 million baht for
the year 2012 through annual excess-of-lossreinsurance contracts. Moreover, the Company
has considered adjusting the coverage and the
insurance premium rates to be appropriate for
the factors and risk of the catastrophes that may
happen, as reviewed by the actuary.
covered where included as covered where included as covered where included as
additional peril
additional peril
additional peril
Marine insurance
•Others including
liability insurance
The Company has set maximum sum insured
allowable for each type of exposure and has
monitored, on a monthly basis, the actual sums
insured for all risks assumed. Also in place is a
process for monitoring and keeping updated on
disaster probability data and analyses through
reinsurers and reinsurance brokers. Furthermore, we have applied actuarial principles to
implementing accumulation control in collaboration with reinsurance market specialists. We
selecting reinsurers and securing reinsurance
coverage are therefore very important
• Preventive and mitigation measures
We have established criteria for screening local
and overseas reinsurers, giving prime consideration
to their financial security and operational transparency. Another determining factor to select
foreign reinsurers is their credit ratings by international agencies like Standard and Poor’s
and A.M. Best (credit ratings at least A-). As for
local reinsurers, analyses of reinsurers’ financial
standing, stability of their capitals, and claims
settlement capacity are also conducted by our
responsible units and foreign reinsurance brokers, with a view to selecting financially stable
reinsurance companies.
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The Siam Commercial Samaggi Insurance
Enterprise Risk Management
I Annual Report 2011
Enterprise Risk Management
In addition to setting reinsurers’ selection
standards, the Company ensures that its reinsurance structure is realigned annually to the
nature of each line of underwriting. We seek
reinsurers through highly professional brokers
3. Default/Credit Risk
The Company’s distribution channels include
agents and brokers, whereby insurance policies
are issued to the insured first before premiums
can be collected from these agents/brokers
within the agreed credit terms. We are thus
posed with the risk of non-payment of outstanding premiums, which could lead to bad debts
or affect our income recognition and liquidity.
Such default or credit risk is conditional on three
major factors: 1) the Company’s process for
collecting premiums due; 2) the intermediaries’
(agents/brokers) ability to deliver collected
premiums; as well as 3) their financial stability
and professional honesty. As at December 31,
2011, the Company had premiums due and
uncollected of 148 million baht or 4.4% of total
premiums. The aging summary of the overdue
amount, considered a manageable level, is
and entered into agreements with them either
in the form of facultative reinsurance or treaty
reinsurance as well as catastrophe reinsurance.
The annual reinsurance structure and the panels
of reinsurers are to be accepted by the Risk
Management Committee.
shown under Note 7 to the Financial Statements.
• Preventive and mitigation measures
We manage the collection of premiums due
by: setting specific and rigorous collection
guidelines; maintaining and reviewing receivables aging on a monthly basis; and regularly
tracking payments. To further reduce the risk
of default, the Company has established the
criteria for screening brokers and agents based
on their financial solidity, while laying down the
requirement for provision of bank guarantee or
guarantor. Time limit for premiums collection has
also been set as per legal requirements. Any
overdue payments which cannot be collected
will be handled by the Premiums Collection Unit
in accordance with the Company’s premiums
collection procedure.
The devastating floods toward the end of 2011
are regarded, in risk management terms, as a
tail risk. Looking back over the past 33 years
since the non-life insurance business started
to collect statistics officially, we find that a flood
event causing damage on a similar scale to the
recent disaster has never happened in Thailand
before. Even the tsunami in 2004 is also considered an “unusual” event, but the difference is
that technically the occurrence likelihood of this
kind of tsunami is very low. Thai non-life insurers
and overseas reinsurers have never hitherto
viewed Thailand as a high-risk country – not
even after the tsunami incident. However, the
deluge last year has completely changed the
picture of Thailand, from a country outside the
catastrophe map to one of the world’s top-ten
countries with catastrophe insurance losses.
Risk management is a concept which seeks
to find a balance between loss probability and
loss value of a given event. In fact, each of us
already exercises risk management in our daily
life, from deciding to leave home, commuting/
traveling to crossing streets and playing sport/
games. We decide to do something, because
we think there is very little likelihood of a loss
event despite its possible severe impact such
as an accident; or on the other hand, we believe
it is likely to happen but the impact would be
very low.
Non-life insurance business is the same thing.
But instead of assessing the likelihood and effects of an event subjectively, it uses historical
62
statistics available as the basis for risk management decision-making.
However, the lesson learned from the great
floods is that tail risk is nearer to home than we
thought. Unpreparedness for extreme events
due to perceived improbability can make the
business fail to take measures to respond to
losses. This may range from failing to factor
value at risk into pricing of premiums; lack of
accumulation control to allow for widespread
losses, to keeping an appropriate level of risks
written. The floods have thus affected the
financial position of non-life operators across
the board.
Risk management is still considered a new
area of knowledge or science in the world.
The theories and concepts, on which most risk
management processes are based, were all
developed after 2000. The tail events over the
last five years, e.g. hurricane Katrina in 2005,
US economic crisis in 2007, Japan’s earthquake
and tsunami in 2011, and Thailand’s floods in
2011 will lead to major reforms in risk management processes and perspectives as well as
regulatory supervision, all aimed at ensuring
strengthened capacity of the business to cope
with future uncertainties.
Changes have also been reflected in risk management efforts of the insurance business in
Thailand, with companies having only adopted
enterprise risk management (ERM) for no more
than five years. They started by formulating a
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The Siam Commercial Samaggi Insurance
comprehensive risk management policy that
covers every area of risk; developing an operational risk management process with relevant
key risk indicators (KRI); and devising risk
management processes for other areas, e.g.
strategic risk, liquidity risk and insurance risk.
Yet, insurers are still a long way from employing
quantitative risk management tools to assess
their preparedness for tail risks.
Regarding the state’s role, the Office of Insurance
Commission (OIC) has played a part in supporting Thai non-life insurers to adjust to market
competition by requiring each company to
maintain robust risk management processes.
The OIC is currently imposing the risk-based
capital (RBC) requirements on all insurance
operators. It will next push for conformity to
international standards by requiring all insurers
to assess their preparedness for extreme risks
through stress test or scenario test as well as
setting minimum criteria for passing the tests. It
is expected the insurance industry will take another five years or so to achieve the standards.
Having appropriate risk management processes has enabled the Company to be well
prepared for the deluge last year. After assessing that our head office’s location would be
affected by floods, we followed the contingency
plan procedures which had been regularly
practiced throughout the previous three years.
A group of staff were relocated to operate from
our backup center equipped with IT systems
and up-to-date databases. Another group
went to work in an unaffected off-site location.
The data and telephone systems of both sites
were connected with the head office, where
a number of staff continued their duties amid
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Enterprise Risk Management
I Annual Report 2011
inundated surroundings. Those members of
staff not required by the contingency plan to
report for work were allowed to telecommute
by connecting to the office’s systems. We
were able to keep all staff informed or make
appointments via the “Call Tree” – a procedure
practiced annually, thus allowing us to deliver
steady service to our customers and partners
throughout the three weeks of contingency plan
implementation.
On future preparations, the Company has made
plans for risk management implementation as
follows:
• Review and revise the risk management
framework/processes to allow for events similar
to the recent deluge by: adjusting premium
rates; lowering risks through setting of sublimits;
and maintaining accumulation control. We are
well aware that there remain other risks of rare
and extreme events.
• Modernize operational risk management
process by applying quantitative tools for risk
assessment and control;
• Adopt full implementation of the “three lines
of defence” approach by promoting inclusive
participation in systematic risk management
by all units concerned, ranging from the riskowner units, the risk management unit, to the
internal audit unit;
• Introduce the risk management framework in
other areas of risk, in addition to those already
implemented;
• Develop a quantitative risk management
database system;
• Ensure readiness of personnel to accept
modern risk management tools;
• Revise contingency plans based on lessons
learned from the floods.
Floods-related non-life insurance statistics
1. Catastrophes with over 100 fatalities in 2011
It can be said that 2011 is truly a year of catastrophes, as the world has faced the highest
economic and insured losses since records
were first kept. Economic losses totaled US$
380.0 billion, while insured losses came to US$
105.0 billion. The losses, arising from a total
of 820 catastrophe events, were higher than
those of 2005 (US$ 262.0 billion) when hurricanes Rita, Wilma and Katrina struck the United
States’ coastline. If 2005 is a year of storms,
then 2011 is a year of earthquakes, especially
in New Zealand and Japan, causing US$ 228.0
billion economic losses and US$ 50.0 billion
insured losses.
Nearly 90% of the 2011 catastrophes were
caused by the weather (310 floods, 300 storms).
Last year’s overall climate-causing insured
losses were the second largest. After inflation
adjustment, one may say that 2011 should be
recorded as a year of catastrophes triggered
by extreme weather.
Divided by continent, the catastrophes occurred during 2011 consist of: 240 events in
Asia; 290 in America, 150 in Europe; 80 in
Africa; and 60 in Australia.
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The Siam Commercial Samaggi Insurance
Enterprise Risk Management
I Annual Report 2011
4. Number of factories and sums insured of flooded industrial estates 2011
2. Loss estimates
Total loss estimate
486 billion baht
Number of insured
84,300
divided into:
• Industrial sector 90%
• Household sector 10%
Source: The Office of Insurance Commission (OIC)
3. Industrial loss estimates
A.
Unit: million baht
B.
C.
Number of factories
Total sum insured
(million baht)
Navanakorn
235
118,867
Rojana
241
108,014
Bang Pa-In
156
90,078
Bang Kradi
106
80,318
Hitech
73
43,173
Saharatana Nakorn
57
15,828
Factory Land
58
505
Total
926
456,783
By industrial
estate
Value of constructions
and machinery
Machinery
(B=Ax0.56)
Stocks
D.
Loss estimate
(B+C)
Saharatana Nakorn
9,106
5,099
2,973
8,072
Rojana
86,986
48,712
25,913
74,625
Hitech
33,294
18,645
13,434
32,079
Name of reinsurer
Bang Pa-In
30,215
16,920
10,612
27,532
Thai Reinsurance
$325-$455 (10-14 พันล้านบาท)
Factory Land
2,160
1,210
686
1,896
Navanakorn
92,614
51,864
34,647
86,511
Lloyd’s
NKSJ Holdings
Munich Re
$2,200
$1,300
$642
Bang Kradi
6,525
3,654
3,042
6,696
Total
260,900
146,104
91,307
237,411
Swiss Re
Zurich Financial
XL Group
$600
$250-$300
$135-$185
SCORE
Everest Re
Partner Re
Endurance
Transatlantic
$180
$145
$120
$76.5
$72
Arch Capital
Validus
Aspen
Flagstone Re
$65
$55.5
$54
$50-$55
Allied World
Axis Capital
$40-$50
$48
RenaissanceRe
Argo Group
Alterra
$45
$25-$35
$30
Platinum Underwriters
$27.9
Unit: million baht
Value of constructions
and machinery
Machinery
(B=Ax0.56)
Stocks
D.
Loss estimate
(B+C)
Chainat
3,246
1,793
2,645
4,438
Nakorn Sawan
7,338
4,083
4,262
8,345
Nonthaburi
30,536
16,920
14,291
31,211
Pathumthani
62,834
35,187
27,738
62,925
Ayutthaya
105,315
58,820
32,501
91,321
Lopburi
52,139
29,180
8,303
37,483
Angthong
1,732
931
448
1,379
Uthai Thani
239
134
105
239
Total
263,379
147,048
90,293
237,341
By
province
A.
B.
C.
Source : Ministry of Industry
66
Industrial park/estate
Source: The Office of Insurance Commission (OIC) and Post Today (October 19, 2011)
5. Losses for reinsurers
Loss estimates
Source: Insurance Journal / Dow Jones Newswires / Business Insurance
67
The Siam Commercial Samaggi Insurance
I Annual Report 2011
Related Party Transactions
Summary of related party transactions and type of business
and relationship of related companies ( showing material transactions only)
Related Party Transactions
The Audit Committee has reviewed the report
summarizing the Company’s related party
transactions and has reported its opinion on
such transactions to the Board of Directors. All
related party transactions, duly audited by the
external auditors, have been properly disclosed
in detail in the notes to the quarterly and annual
financial statements.
• Nature of Transactions
The Company has set out, in Note 30 to the
Financial Statements, details of the transactions and balances with related parties as at
December 31, 2011 including type of business
and relationship of the related parties.
During the year, a portion of the Company’s
assets, liabilities, income and expenditure
represented transactions undertaken with parties related to it through cross-shareholdings or
68
cross-directorships, as well as transactions with
controlled entities of its major shareholder. The
Management believed the major shareholder
had no material influence over any of these
related parties. Such transactions ranged from
bills of exchange, bank deposits, insurance premiums, interest and dividend income, insurance
claims, commissions and brokerages, to other
underwriting expenses. All transactions were
carried out in the ordinary course of business
according to normal trade terms in ensuring
maximum benefit to the Company.
Neither the major shareholder nor any controlled entities of the major shareholder operated
business of related or competing nature. The
Company therefore had no policy or practices of
conducting business transactions with parties
that might pose a conflict of interest.
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The Siam Commercial Samaggi Insurance
• Justification for Transactions
The transactions entered into between the
Company and related parties were those
transactions that supported the Company in
maintaining and expanding its client base
while enabling its operations to achieve stable
growth. In terms of justification, all of them
represented normal business transactions
made in compliance with the rules and requirements of the Office of the Insurance Commission
(OIC). They were carried out on standard trade
terms with the Company’s best interest taken
into account. Pricing policy for such transactions were the same as those applicable to
general clients.
The various forms of investment maintained by
the Company, i.e. bank deposits, investments
in mutual funds and promissory notes and
• Approval Procedure
Decisions concerning transactions with related persons or companies, either relating
to underwriting, deposit or investment, have
to be made with the approval of the Board of
Directors and/or the Investment Committee
within the delegated limits and in accordance
with regular business practices and general
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Related Party Transactions
I Annual Report 2011
shareholdings in related companies, represented the Company’s approach to investment
management in ensuring a diversified portfolio
and maximum investment returns.
Insurance business transactions during the
year such as premiums written, claims payments, commissions/brokerages and underwriting expenses, were all conducted as part of the
Company’s normal business practices. The
aim was to expand the underwriting business,
reflecting a common goal for all other insurers
who also seek to achieve business expansion
through alliance partners. Transactions
of insurance claims were also made through
a claims management process which was
the standard service for all customers of the
Company.
• Future Policy and Trends
Future transactions between the Company and
its major shareholder, associated companies
or any party/person with potential conflict of
interest will be governed by a policy stipulating
standard business practices. The Company
will conduct all transactions with fairness, transparency and accountability to ensure its best
interests.
Related party transactions are likely to remain in
the future, since the Company would still aim to
broaden its retail and corporate customer base
and to focus on those investments that deliver
highest possible returns with appropriate level
of risk. In this regard, the major shareholder and
affiliates of the Company all represent separate
entities which would enable the Company to
reach its established goals.
In addition to the existing reinsurance treaty
between the Company and the Thai Reinsurance Public Company Limited, the Company
will have to follow the policy of the Office of
the Insurance Commission which requires all
insurance operators to make cession to and
retrocession from the Thai Reinsurance PCL.
Such transactions are regarded as related party
transactions arising as a result of compliance
with state policy.
commercial terms. All transactions have to
comply with the laws governing securities and
exchange, as well as the rules, notifications,
orders and requirements of the Stock Exchange
of Thailand. They should also conform to the
accounting principles on disclosures of related
party transactions and acquisition or disposal of
significant asset prescribed by the Federation
of Accounting Professions.
71
The Siam Commercial Samaggi Insurance
Financial Statement
I Annual Report 2011
Audit Report of Certified
Public Accountant
To the Shareholders of The Siam Commercial Samaggi
Insurance Public Company Limited
I have audited the accompanying statements of financial position of The Siam Commercial
Samaggi Insurance Public Company Limited as at 31 December 2011 and 2010; and the
related statements of comprehensive income, changes in equity and cash flows for the
years then ended. The Company’s management is responsible for the correctness and
completeness of information presented in these financial statements. My responsibility is
to express an opinion on these financial statements based on my audits.
I conducted my audits in accordance with generally accepted auditing standards. Those
standards requirethat I plan and perform the audit to obtain reasonable assurance about
whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial
statements. An audit also includes assessing the accountingprinciples used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. I believe that my audits provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of The Siam Commercial Samaggi Insurance Public
Company Limited as at 31 December 2011 and 2010 and the results of its operations and
its cash flows for the years then ended in accordance with Financial Reporting Standards.
As explained in notes 2, 4, 17 and 27 to the accompanying financial statements, with
effect from 1 January 2011 the Company has adopted certain new and revised financial
reporting standards and the Notification of the Office of Insurance Commission, regarding
“Rules Procedures Condition and Timing Period for Preparation and Submission of the
Financial Statements and Reporting the Operation of Non-life Insurance” No. 2 B.E. 2553,
dated 27 May 2010. The Company’s financial statements for the year ended 31 December
2010 have been restated accordingly.
(Pantip Gulsantithamrong)
Certified Public Accountant
Registration No. 4208
KPMG Phoomchai Audit Ltd.
Bangkok
20 January 2012
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The Siam Commercial Samaggi Insurance
General Information
I Annual Report 2011
General Information
Type of Business
Non-Life Insurance
Authorized Share Capital
462,000,000 Baht
Paid-up Share Capital
454,452,155 Baht
Head Office : Bangkok
The Siam Commercial Samaggi Insurance Public Company Limited
2/4 Siam Commercial Samaggi Insurance Tower, 12th Floor, Northpark
Project, Vibhabadi Rangsit Road, Thung Song Hong, Laksi,
Bangkok 10210
Tel : 0-2555-9100 Fax No. 0-2955-0205
E-mail Address : scsmg@scsmg.co.th
Website : http://www.scsmg.co.th
Northern
Chiangmai Branch Manager Branch : MR. SOMCHAI THAIEIAD (Acting)
264/6 Mahidol Road, Tambol Padad, Ampur Muang, Chiangmai 50100
Tel : 0-5328-1213-4, 0-5320-1434-6
Fax No. 0-5328-1215
Covered Areas : Chiangmai, Chiangrai, Lamphun, Lampang, Phrae, Nan, Phayao, Mae
Hong Son
E-mail : chiangmai@scsmg.co.th
Phisanulok Branch
Manager Branch : MISS. BOONYARAT WUTHISRISATHIENKUL
5/12-13 Moo 5 Singhawat Road, Tumbol Banklong, Ampur Muang, Phisanulok 65000
Tel : 0-5524-2522-4
Fax No.0-5524-2521
Covered Areas : Phisanulok, Sukhothai, Nakhonsawan, Chainat, Kamphaengphet, Tak, Phichit, Uttaradit, Uthai Thani
E-mail : pitsanuloke@scsmg.co.th
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137
The Siam Commercial Samaggi Insurance
General Information
I Annual Report 2011
Central
Nakhonpathom Branch
Manager Branch : MISS. SUREE BUNLUEDEJ
77/7-8 Malaiman Road, Tambol Lumphaya, Ampur Muang, Nakhonpathom 73000
Tel : 0-3427-3038-9
Fax No. 0-3421-8741
Covered Areas : Nakhonpathom, Sumutsakron, Sumutsongkram,Suphanburi, Ratchaburi,
Pecthchaburi, PrachuapkhiriKhan, Kanchanaburi
E-mail : nakhonpathom@scsmg.co.th
Lopburi Branch
Manager Branch : MR. ASAVIN JINDAANUNYOTH
256/10-11 Moo 2 Phaholyothim Road, Tumbol Tha-Sala, Ampere Muang, Lobburi 15000
Tel : 0-3661-3473-4 Fax No.0-3662-6341
Covered Areas : Lobburi, Saraburi, Ayuhthaya, Sing Buri, Angthong, Pecthchabul, Nakhon Nayok
E-mail : lopburi@scsmg.co.th
Northeastern
Ubonratchathani Branch
Manager Branch : MISS NATTAKARN SRIPINIT
157 Upparat Road, Tambol Naimuang, Ampur Muang, Ubonratchathani 34000
Tel : 0-4526-2846, 0-4526-2849
Fax No.0-426-2565
Covered Areas : Ubonratchathani, Yasothon, Amnatcharoen, Sisaket
E-mail : ubon@scsmg.co.th
Eastern
Pattaya Branch
Manager Branch : MR. SANGSOON PATTHANAKUL
206/108 Kiangtale Plaza, Pattayaklang Road, Tambol Nongplue, Ampur Banglamung,
Chonburi 20260
Tel : 0-3842-6801-3
Fax No.0-3842-7220
Covered Areas : Pattaya, Chachoengsao, Chonburi, Rayong, Chantaburi, Trat, Sa Kaeo,
Phrachin Buri
E-mail : pattaya@scsmg.co.th
Khonkaen Branch Manager Branch : MR. SOMCHAI THAIEIAD (Acting)
381/50 Moo 17 Mittraphap Road, Tambol Ni Muang, Ampur Muang, Khonkaen 40000
Tel : 0-4327-1681-3
Fax No.0-4327-1684
Covered Areas : Khonkaen, Kalasin, Mahasarakram, Roiet
E-mail : khonkaen@scsmg.co.th
Nakonratchasima Branch
Manager Branch : MR. CHUTCHAWAL KMOLSIRIPASRIT
751/17 Mittraphap Road, Tambol Ni Muang, Ampere Muang, Nakonratchasima 30000
Tel : 0-4434-2634-5
Fax No.0-4434-2633
Covered Areas : Nakonratchasima, Chaiyaphum, Buriram, Surin
E-mail : korat@scsmg.co.th
Udonthani Branch
Manager Branch : MISS POONSUB CHARDSUNGNEON
220/2-3 Moo 8, Udon-Nongkhai Road, Tambol Moomon, Ampur Muang, Udonthani 41000
Tel : 0-4232-5641-3
Fax No.0-4232-5640
Covered Areas : Udonthani, Sakonnakhon, Nongbualamphu, Nongkhai, Loei,
Nakhon Phanom, Mukdahan
E-mail : udon@scsmg.co.th
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Southern
Surathani Branch
Manager Branch : MR. CHAIYUT PORMPHET
244/15 Moo 1, Surat-Nasarn Road, Tambol Makhamtia, Ampur Muang, Surathani Branch
84000
Tel : 0-7721-8970, 0-7721-9031, 0-7721-9070
Fax No.0-7721-8361, 0-7721-9044
Covered Areas : Surathani, Nakhonsithammarat, Chumporn, Trang, Krabi
E-mail : surat@scsmg.co.th
Hadyai Branch
Manager Branch : MR. PAIBOON SIRIKULTHANASUP
591 Supasarnrangsun Road, Tambol Hadyai, Ampur Hadyai, Songkhla 90110
Tel : 0-7436-4782-3
Fax No.0-7436-4784
Covered Areas : Hadyai, Songkhla, Phatthalung, Yala, Pattani, Narathiwat
E-mail : hatyai@scsmg.co.th
Phuket Branch
Manager Branch : MR. CHAIYUT PORMPHET
17 Soi 3, Pattana Road, Tambol Tlard Nua, Ampur Muang, Phuket 83000
Tel : 0-7625-6841-3
Fax No. 0-7625-6844
Covered Areas : Phuket, Ranong, Phang-Nga
E-mail : phuket@scsmg.co.th
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The Siam Commercial Samaggi Insurance
General Information
I Annual Report 2011
Shareholding Structure
Major Shareholders as at December 30, 2011
Dividend Payment Policy
The Company has a policy to pay an annual dividend to its shareholders at a rate of not less
than 50% of the net profit.
Reference Parties
Thailand Securities Depositories Co.,Ltd.
62 The Stock Exchange of Thailand Building, Ratchadapisek Road, Khet Klongtoey,
Bangkok 10110
Tel : 0-2229-2000, 0-2229-2800
Fax No.0-2654-5427
Share Registrar
Auditor
As at December 30, 2011, total registered paid-up share capital of the company was
Baht 454,452,155 divided into 90,890,431 shares of Baht 5 each.
Remuneration for auditor
KPMG Phoomchai Holdings Co., Ltd.
48th - 51st Floor, Empire Tower 195 South Sathorn Road, Bangkok 10120
Tel : 0-2677-2000
Fax No.0-2677-2222
Commercial Bank
The Siam Commercial Bank PCL. : Ngamwongwan Branch
66/7 Moo 2 Ngamwongwan Road, Bangkhen Tambol, Ampur Muang, Nonthaburi 11000
Tel : 0-2589-2375-8
Fax No.0-2591-5190
The company paid for remuneration for auditor in 2011 as follows :
The Siam Commercial Bank PCL. : Bang Khen Branch
1436/10-13 Pahonyothin Road, Ladyao, District Chatuchak, Province Bangkok 10900
Tel : 0-2513-2758-9, 0-2513-5383 Fax No. 0-2513-0258
Government Housing Bank : Head Office
63 Rama 9 Road, Huaykwang, Bangkok 10320
Tel : 0-2645-9000
Fax No. 0-2645-9001
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VISION
To be a leading insurer operating
under good governance Principles
with maximum confidence and
satisfaction from customers,
shareholders and employees.
MISSION
• To be committed to providing excellent
insurance services;
• To develop and maintain a loyal, long-term
customer base;
• To reach a wider valued clientele;
• To fairly protect the interests of all customers,
business partners, shareholders and employees;
• To cater to need of customers through comprenhensive
product innovation.
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The Siam Commercial Samaggi Insurance
I Annual Report 2011