ING Life reaffirms financial strength
Written by Writer on Wednesday, October 22nd, 2008
ING Life reaffirms financial strength
Company expects 20% growth this year
CHAROEN KITTIKANYA
Bangkok Post
Wednesday October 22, 2008
ING Life, the Thai life insurance unit of the Dutch financial-services giant ING Group, reaffirmed yesterday that it is fully capitalised and has the financial strength to cover all obligations to policyholders.
Ramakrishnan Subramanian (left), chief retail banking officer of TMB Bank, and Rajesh Sethi, chief executive of ING Life, announce a promotion until the end of the year offering rewards of up to three million baht, including a new Honda Jazz sedan. PHRAKRIT JUNTAWONG
President and CEO Rajesh Sethi added that this year the company expects growth of at least 20% on the 1.74 billion baht in new business it achieved last year, despite rising fuel prices, domestic turmoil and global financial troubles.
“We would like to stress that ING Life here is extremely well-capitalised and our solvency rate now stands over 300 higher than legal requirements,” he said.
“Our business here is not affected at all. Rather, we have gained wider access to more money after the Dutch government threw a 10 billion [US$13.4 billion] lifeline to shore up the group’s capital position.”
Philippe Damas, executive committee chairman for TMB Bank - in which ING currently holds a 26.4% stake - and chief executive for ING Retail Banking Asia, also confirmed yesterday that ING remained fully committed to the Thai market.
“Retail banking activities in Asia, including Thailand, are at the core of ING’s strategic direction,” he said.
“We want to provide retail customers with the products they need to grow savings, manage investments and prepare for retirement with confidence. We will build and invest more in bank distribution platforms and increasingly invest in high-growth markets.”
ING on Sunday announced that it would accept a capital injection from the Dutch government as part of the country’s 20-billion programme to stabilise the financial sector.
ING chief executive Michel Tilmant said that - although the group’s capital was in line with regulatory requirements - the financial crisis had led to an “internationally recognised belief that going forward, in this market environment, capital requirements for financial institutions should be higher.”
From the group’s 10 billion credit line, Mr Sethi said it was planned that five billion would support banking business, two billion would support insurance business worldwide and the remaining three billion would repay debts.
Mr Sethi described ING Group’s difficulties as stemming mainly from equity prices rather than from acute insolvency or financial liquidity problems.
As of June 30, ING Life Thailand had assets of 10.62 billion baht, investment assets of 8.98 billion and life insurance reserves of 9.495 billion. It has paid-up registered capital of 4.58 billion. For the first eight months of 2008 it reported 15% new business growth to 1.13 billion baht on 5.55 billion in total premiums.
ING Life this year expects to write 2.1 billion baht in first-year premiums - 1.65 billion baht generated by agents (an 18% increase) and 450 million baht from telesales (a 38% increase). Total written premiums are expected to reach 6.06 billion baht.
The figures exclude premiums to be generated from bancassurance through TMB, in which ING Group acquired a 30% stake last year for 460 million as part of the group’s plan to extend its footprint in Asia.
ING Life expects to earn up to one billion baht from bancassurance over the first 12 months after teaming with TMB’s 470 branches in May this year.
