Summary of the figures for the financial year

The Company achieved an improved result of THB 321.7 million (THB 272.4 m) in 2010. Group equity increased to THB 5,560 m (THB 5,444 m) while earnings per share improved by 15.5% to THB 1.29 (THB 1.09). The company outperformed the market in terms of volume, policy and customer growth while the percentage for administration expenses continued to reduce in line with plan.

The combined ratio was 97.8% (91.60%) of net earned premiums. The overall figure contains 4.0 (0.0) percentage points for natural catastrophes – a major loss burden that is well above normal but substantially less than the record levels of  the 2002 and 2004/2005 periods. The most significant loss event was the floods in Hadyai and surrounding areas which occurred in quarter four. New business strain had the largest impact on the combined ratio due to insurance legislation requiring full acquisition costs to be accounted for on day one.

Compared with the previous year, premium income grew by 14.5% to THB 2,095 m (THB 1,830 m). Since November, Ayudhya Insurance‘s consolidated financial statements include its local acquisition, The BT Insurance Company Limited (now Sri Ayudhya General Insurance Company Limited), which contributed gross premium income of THB 93.0 m in 2010.

Ayud has a strong capital buffer with a solvency ratio of 4,031%.

Outlook for 2011

As approved by shareholders in 2010, in 2011 the company will begin the systematic transfer to and consolidation of its insurance portfolio within its wholly owned subsidiary, Sri Ayudhya General Insurance Company Limited, and commence winding down its own insurance operations. Completion is expected by year end after which Ayud will return its insurance licence to the Office of the Insurance Commissioner and convert itself into an investment holding company. Henceforth non-life insurance business will be conducted exclusively through Sri Ayudhya General Insurance Company Limited. As such, it is envisaged that Risk Based Capital will have limited impact on Ayudhya Insurance in the future.

Rowan D'Arcy
President                                                                 
                      
Download Letter from President by PDF file.