Thai Group Holdings Public Company Limited or TGH notified the Stock Exchange of Thailand (SET) that the resolution of the Board of Directors meeting of the Company regarding the termination of the Company’s non-life insurance business Southeast Insurance Public Company Limited
Due to the problem of the epidemic situation of the coronavirus disease 2019 (COVID-19) in the past, which has a significantly higher number and affects the general insurance business. Previously, the Thai Group Holdings Public Company Limited had solved the problem by restructuring the group in late 2021 as follows:
1) Sale of shares of Thai Insurance Public Company Limited to a major shareholder of the Company (TCC Group)
2) Major shareholder of the Company To provide financial support to Thai Insurance, which will be used to pay for claims arising from COVID-19 insurance claims from policyholder customers of both Thai Insurance and Southeast Insurance Company Limited. (Public) in the amount of 9,900 million baht. Support from the major shareholders of the Company. Such has been used to pay as compensation from insurance claims. COVID-19 in the part of Southeast Insurance (through reinsurance contracts entered into with Thai Insurance) amounting to approximately 8,060 million baht, which allows Southeast Insurance to remain in the position of having assets more than liabilities and able to carry on business in the past
As of January 1, 2022, Southeast Insurance has remaining net assets of more than 1,800 million baht and is still able to Maintain the Capital Adequacy Ratio at approximately 170%.
However, due to the problem of mutation and the new wave of epidemic Omicron coronavirus. which continues to increase in severity, is likely to affect the financial condition and operations to maintain the Capital Adequacy Ratio of Southeast Insurance to be lower than the rate required by law in the near term
Southeast Insurance Therefore, an Extraordinary General Meeting of Shareholders was called to consider and resolve to terminate the non-life insurance business and return the non-life insurance business license to the legal registrar. and transfer the business of Southeast Insurance to the Company Indra Insurance Public Company Limited, the Board of Directors has considered together with the management representatives of Southeast Insurance in all aspects.
The aim is to take care of all concerned parties not to be affected in a wide area as in the case of other non-life insurance companies whose licenses have been revoked. Those affected will not be limited to the insured according to policy COVID-19 only but also to the insured of other types of insurance license revoked It will make the insurance fund have a financial burden. Due to the need to help the people involved, which will be a burden on the economy and industry as a whole. In addition, when considering the financial status of Southeast Insurance at the moment Which has net assets of more than 1,800 million baht and capital (Capital Adequacy Ratio) about 170%, Southeast Insurance is able to pay back all insured people. And still have enough money left over to pay off all the business partners and all employees. which the ability to pay debt of Southeast Insurance will be reduced if the decision to act on this matter is delayed.
Therefore, the voluntary termination of non-life insurance business while Southeast Insurance still has sufficient financial status. and also maintain the capital fund at the rate prescribed by law by requesting the Commission to supervise and promote the insurance business Considering a non-life insurance fund Has the authority to proceed with the return of insurance premiums for all insureds. according to the insurance policy that Southeast Insurance There are still obligations under the insurance policy to the insured (which includes the Accident and Sickness Insurance Policy due to Corona 2019 (COVID-19) as well as the provision of an insurer. new to the insured according to the rules and guidelines of the insurance fund
by Southeast Insurance As an advocate in various aspects of the operation of the insurance fund, it is a necessary measure and the best solution for those who have All stakeholders and will be able to remedy the Insured and related persons as fair as possible in current situation Including not causing any additional burden to the insurance fund in any way
While other alternatives such as raising capital or requesting credit from financial institutions for use in the business of Southeast Insurance may not be possible. including shareholders the company’s major itself has already provided financial support for almost 10 billion baht to help support the group’s non-life insurance business. Status or operation that lacks suitability to undertake non-life insurance business and license has been revoked compare with the case Applying for permission to voluntarily terminate the insurance business in accordance with the procedures of the non-life insurance law and see that there are important considerations Several factors show that applying for an insurance cessation is an option that will be in the best interests of the stakeholders. All parties involved therefore
The Thai group ordered the closure. “Southeast Insurance” toxic claims insurance for COVID 9,900 million baht. The Board of Directors’ meeting No. 2/2565, convened on January 25, 2022, therefore resolved on termination. operates non-life insurance business Southeast Insurance as follows:
2. Disagreeing with the offer Southeast Insurance transferred the business of Southeast Insurance to Indara Insurance Public Company Limited due to the opinion that when the Insurance Commission considers that the fund Non-life insurance is the person in charge of dealing with the cessation of the insurance business. Arcane Insurance according to the rules and guidelines that the insurance fund already has It should give the insurance fund a person who has. Powers to operate Operates to return insurance premiums to all insured according to the insurance policy that Southeast Insurance still has obligations under the insurance policy to that insured (including accident insurance policy and sickness caused by Coronavirus Disease 2019 (COVID-19). ), including the provision of a new insurer for the insured insurance according to the rules and guidelines of the Insurance Fund as well by Southeast Insurance be a sponsor various operations to the said non-life insurance fund to build confidence for the insured and to maintain the interests of the insured and related persons in all parties. To present the proxy to the Extraordinary General Meeting of Shareholders of Southeast Insurance to vote to approve the insurance fund as Persons who come to take action related to the cessation of the non-life insurance business Southeast Insurance according to the rules and guidelines that the Insurance Fund has consideration given Southeast Insurance as a subsidiary of the Company Dissolution of business is under the jurisdiction of The Board of Directors will consider and approve the operation without having to seek approval from the shareholders’ meeting of the Company.
However, the cessation of non-life insurance business and the management of all liabilities and insurance policies Southeast Insurance Must be in accordance with the resolution of the shareholders’ meeting of Southeast Insurance, which will be held on January 26, 2022. If there is any progress, the company will inform further.
