Oct. 29--Krungthai-AXA Life Insurance forecasts continued improvements in performance after having cleared accumulated losses and earned a healthy profit in the first nine months of this year.

"We expect higher profit this year and sales despite the world financial crisis and domestic economic constraints," said Michael Plaxton, the CEO of the French-Thai joint venture.

Krungthai-AXA posted statutory profits of 691 million baht the first nine months, 62 percent higher than the 426 million baht it earned in the same period last year.

Higher profits were driven by sales growth, particularly from bancassurance, and active marketing as part of a rebranding that began early the year.

The company said new business premiums rose 28 percent for the nine-month period to 3.26 billion baht, on total premium income of 8.88 billion baht, up 35 percent from 6.53 billion baht a year earlier.

Bancassurance, mainly through Krung Thai Bank, generated new premiums of 1.6 billion baht, a rise of 54 percent year-on-year, and sales through agents rose 9 percent to 1.5 billion baht.

Bancassurance now accounts for 49 percent of the 10-year-old company's new business, with 46 percent from agents and 5 percent from alternative channels, mainly brokers.

Currently, Krungthai-AXA has 700 financial advisers at KTB branches nationwide. With 14 million accounts and 800 branches, the bank is seen as having string potential to deliver more business going forward.

Mr Plaxton said Krungthai-AXA was confident it could maintain its growth momentum both in new business and total premiums until the end of the year.

Last year, the company reported new business premiums worth 3.53 billion baht with total premiums of 9.05 billion.

Chief financial officer David Korunic said Krungthai-AXA Life was financially well-positioned with a solvency ratio almost six times greater than the requirement under the Non-Life Insurance Act.

At the end of 2007, the company cleared its accumulated losses worth one billion baht. It posted profits for the first time last year of 603 million baht.

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