Apr. 1--PENANG -- Despite unfavourable economic conditions and intensifying competition, notably in motor insurance, AXA Insurance Plc, remains firm on its growth target of 10-12 percent this year after a profitable 2008.

CEO Kheedhej Anansiriprapha said AXA Thailand expected its gross written premiums this year to be around 1.94 billion to 1.97 billion baht with net profit of 50.6 million. Growth would be driven largely by earnings from motor, property, health, and liabilities and diversified proactive distributors.

Motor insurance accounts for 54 percent of the company's premiums. It plans to focus more this year on affordable products to appeal to budget-conscious drivers, particularly for passenger cars and pickup trucks.

Mr Kheedhej said AXA Insurance was also committed this year to leveraging business growth of its partners by supporting fast service with IT to manage the cash-before-cover system now being applied to motor insurance in Thailand.

Under the new system that took effect in January, the insured must pay premiums before coverage begins.

The company is scheduled by June this year to introduce Quicklink, a front-end system to speed quotations, renewals and policy issuance at the point of purchase.

The company will install Quicklink at more than 200 business partners by the end of the year, with an investment of five million baht.

AXA last year reported gross written premiums (GWP) of 1.746 billion baht, an increase of 5.6 percent from 1.65 billion the year before. The growth was contributed by 940.5 million baht from motor insurance (up 6 percent), 543.5 million from miscellaneous insurance (up 9 percent), 121.9 million from fire insurance (up 3 percent) and 140.9 million from marine insurance (down 6.3 percent).

AXA Insurance last year also posted good underwriting results of 41.2 million, compared with a loss of 67.5 million a year earlier. The loss ratio declined six percentage points to 62.1 percent. These signify underwriting strategy and loss improvements in the major insurance classes of motor, property and marine, he said.

Investment income declined to 36.0 million baht from 56.8 million in 2007, largely due to bearish investment conditions, particularly in the stock market.

In total, the company had net income at 55 million baht, compared with a net loss of 5.6 millions in 2007.

The company's solvency ratio remained strong at 452.8 million baht, 4.4 times greater than the requirement under the Non-Life Insurance Act.

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