Bangkok--Feb 11--Siam Commercial New York Life
Siam Commercial New York Life Insurance Public Company Limited (SCNYL) today announces that it would target an ambitious goal to become top five largest life insurance companies in term of new business premium by the end of this year. Its total new business sales increased by 134% to 1.755 billion baht during the year 2003. This was 6 times above the industry's average of 15% and moved SCNYL into the 6th place from the 9th position in the industry in terms of new business.
Although all distribution channels outperformed the industry average, Bancassurance sales were especially strong, growing at 879% to 688 million baht.
"2003 was an outstanding year for Siam Commercial New York Life', said President and CEO C. Donald Carden. "The company's new business performance totaled Baht 1.755 billion, representing an increase of more than 134% over last year's results. This was by far one of the best performances in the entire industry and has moved Siam Commercial New York Life up from number 9 in the industry to number 6 in terms of new business and market share increased from 1.78% to 3.77%. Total premiums increased to Baht 2.610 billion reflecting an 85% increase over 2002 results."
Agency distribution also recorded strong growth as a direct result of the successful New York Life "GOLD" agent training program. The company now has a direct sales force of 1,800 agents located throughout 44 branches in the Kingdom.
"Bancassurance results were absolutely spectacular," Mr. Carden continued. "The synergies between Siam Commercial Bank and Siam Commercial New York Life have created one of the most productive Bancassurance operations in the Kingdom. Although we did not fully launce our Bancassurance channel until July 2003, the year-end results will attest that we are among the industry leaders in this distribution channel." The growth of this channel has been strongly supported by a network of over 460 Siam Commercial Bank branches nationwide. This total will increase to all 500 SCB branches by the end of the first quarter 2004. The strategy of offering a selective product portfolio focusing on the needs of the individual Bank customer have proven to be sound and Siam Commercial New York Life have established a separate Bancassurance customer help desk to assure a high level of service.
Mr. Carden added saying that "It is common practice for companies in our industry to announce their Bancassurance totals based on both direct bank sales and credit life. If we use that format, our Bancassurance sales would stand at Baht 1.224 billion, an increase of 227% over 2002 results."
Two new Bancassurance products will be launched in April of this year; a new savings policy that will offer SCB customers a higher investment return than in the current environment and a whole life policy targeted to serve corporate accounts and small entrepreneur customers. "Our Agency Distribution channel also recorded a record performance and also won recognition as winners of the New York Life Chairman's Trophy Award, an annual award given to the top Agency organization in the world of New York Life International for two consecutive years" Mr. Carden said. "We experienced a 33% increase in the number of active agents and a 10% increase in the amount of premium sold per agent. These increases are a direct result of the quality of agents now being hired".
SCNYL plans to continue its rapid growth plans by opening 5 new career agencies in Khon Kaen, Chonburi, Phuket and 2 in Bangkok. Today, the company has 32 base shops and 12 career shops in operation.
Two years ago, Siam Commercial New York Life boldly announced that they would become one of the top five life insurance companies in terms of new business by the year 2007. After the strong results obtained during 2003, this goal has now been re-forecast to be achieved by the end of 2004. The company expects to make the top four by the end of 2005.
During the year ahead, SCNYL plans to continue its momentum. The company expects to achieve new first year premiums of Baht 2.513 billion, resulting in a 43% increase over 2003 results. Total premiums are expected to reach Baht 4,031 billion, reflecting a 54% increase.
"Although I realize these goals are quite aggressive, we are confident that they can be achieved," Carden explained. "If we want to be a market leader we are going to have to grow faster than our competitors, since there is no other way to obtain market share. All six of our distribution channels are outperforming the industry averages and our partnership with Siam Commercial Bank gives us a huge advantage in the marketplace."
Future plans call on Siam Commercial New York Life to open new agency operations within Siam Commercial Bank branches whenever possible. This will allow the company to further expand the branding of its image while developing their agency business nationally as well.
The company would focus on endowment products and also look at adding Par policies to take advantage of the rising interest rate in the current bull market. It would also continue to emphasize to develop riders to match individual clients needs. Besides, professional agents would be equipped with comprehensive training to enhance their skills and expertise to ensure that they would be able to provide financial planning consultant for consumers.
For more information, please contact
Khun Nantawan Kijthanacharoen
Corporate Communications Manager
Tel 02-655-3000 ext 3839 Mobile 01-835-6540
Email :
[email protected] www.scnyl.com End.
-RK-