Asia Insurance 1950, formerly Asia International Insurance, expects to post a profit this year after three years of restructuring.

''Our break-even point is 400 million baht (in revenue), and we already neared that last year,'' said chief executive Chula-Payap Srikarnchana.

Mr Chula-Payap headed a team of investors which bought a 65% stake in Asia International Insurance from the Tarnvanichkul family in 2004.

The transaction came shortly after the Srikarnchana family sold its 40% stake in the two insurance businesses of South East, one of the country's oldest insurance companies, to whisky tycoon Charoen Sirivadhanabhakdi.

Founded in 1950, Asia International Insurance Co (AII) originally operated as Yang Yuen Insurance Co and was renamed in 1969 as Asia Trust Insurance. The company has operated as Asia International Insurance since 1984 and has generally kept a low profile.

After the last shareholding change, the firm changed its name to Asia Insurance 1950 in June 2005, with registered capital increased to 100 million baht at the end of last year, from 30 million baht in 2003.

The company plans to raise registered capital to 300 million baht by the end of this year, with premiums earned worth 500-550 million baht this year, a rise from 350 million in 2005, 198 million in 2004, and 55 million baht in 2003.

''Our operating cost would be reduced to 15% from the current 22% if we achieve 500 million baht in premiums,'' said Mr Chula-Payap. ''The cost would be much lower at just 12% if our premiums reached 1.2-1.5 billion baht by 2008.''

Mr Chula-Payap is aware of the advantages of being small but smart in business.

''Because we are small, we can offer tailor-made products that match the varying needs of individual customers and ensure flexibility to explore innovative products and new markets,'' he said.

''We want to become a small but smart insurer which adds a splash of colour to the market through innovative, friendly and trendy products, and through a new marketing channel in convenience stores and express outlets nationwide.''

For example, the company has launched third-party voluntary motor insurance under the Asia3 Plus scheme, which offers better benefits and protection than general third-party coverage, known in the trade as Class-3 voluntary motor insurance.

Class 3 usually covers only personal injury, death and property damage to one third party, but Asia3 Plus also covers drivers, car damage of up to 100,000 baht per accident, and personal accident coverage for as many as four passengers.

Premiums for the policy have been set at a flat rate of 6,800 baht a year, applicable to any brand or model of car of any age, but the coverage is for collision only.

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CHAROEN KITTIKANYA

© Copyright The Post Publishing Public Co., Ltd. 2006