Bangkok--25 Feb--Krungthai-AXA Life Insurance
In October we met with you to share our new TV Ad and the proof on our positioning as the company that actually delivers Corporate Responsibility. You asked about year-end results and I asked you to be patient and wait for the year to close. Thank you for being patient. Thank you for being here. I believe we have a great story to share with you and that your wait has been worthwhile.
As the result of excellent sales growth and strong financial management KAL has turned around accumulated losses two years ago of Baht 1 billion to make our shareholders happy with a dividend payment this year. In those two years sales have more than doubled (Bt 1.6 billion to Bt 3.5 billion) and our management expense ratio has dropped from 20% to 10.5%. In the same two years the company’s value has quadrupled.
In these times of world-wide financial crisis KAL has remained stable and solid and enjoys a solvency margin of more than 3 times the level that is required to be held by the Office of the Insurance Commissioner.
KAL is truly a success story so how was it achieved? Simply — we employ excellent Thai people. In our distribution channels — we have developed the most productive distributors in the market today and they are supported by the best head office team around. People are what make the difference in successful organisations. We cherish and value our people. We invest in their development with the best training programmes around. We engage them to our cause. We share the same vision of success.
Two years ago I told you we had a belief in the power of people to make a difference and that we would invest in them as the foundation of our strategy. Today you are seeing the results of that investment through our results. People deliver results not companies.
These are all MANCOM positions who you will meet this evening at our Thank you party. We also found home grown talent to take charge of Finance, Investments, Customer Care, Operations, New Business, Sales Support, Marketing Product Development and many other important leadership and strategic functions. We grow people because in that process we grow our business results — people deliver.
At the core of our results are sales. This includes a full-time and professional Agency team producing 54% of total sales. Our Agency model is unique and very successful. In the last 4 years the KAL Agency team has topped the productivity tables in Thailand — productivity is important for the customer because it means they have full-time attention from a career Agent — productivity is important to the Agent as it is the key to building a career and realising financial dreams. Our compensation is unique and motivates performance. We provide significant support through the KAL Academy training centre (we are soon to open additional facilities in the North, the North East and the South). We train our agents — we train them again — we keep training them through Sales Schools. We support our partner GAs in the development of their businesses for example we have just launched an integrated KAL office design and refurbishment programme. We set standards and we live by them. We expect results and we manage people to achieve their aspirations in this business. If you are considering an Agency career come join the best at Krungthai AXA Life — if you qualify to join the best — a commitment to customers, high integrity, willing to learn new skills, committed to a full-time career — then come see Krungthai AXA Life because we know how to make you succeed better than anyone else in this business — if you want proof just look at our results.
BankAssure with massive support from Krungthai Bank is the second successful element of our multi-distribution strategy and contributes 40% of total sales. KTB is not only a shareholder of our business but is a true business partner in every sense of the phrase. They understand that life insurance is an important part of being a “Convenience Bank” — providing a financial supermarket for their 14 million customers. KAL now has 550 professional Financial Advisers working through the Branch network helping customers to identify their needs and understanding the solutions available to them. Highly trained these Financial Advisers are supported by the latest technology and have become part of the branch team.
Alternative Distribution is also making a significant growing contribution with 6% of new sales through a blend of different affiliations. KK Wealth Management, Direct Marketing, Broker business and more recently Cooperative and Group business are all working well.
The talent in distribution is well supported by talent in the head office. From underwriting to cashiers, from administrators to financial managers, from support staff to IT and HR we all share the same vision — a vision of success and the commitment to our customers.
We truly care about our position in Thailand and our responsibilities to this beautiful country and the Thai people. The Corporate Social Responsibility programmes and a new TV advertisement starring Roto and called “school” are recognised as market leading initiatives.
KAL Marketing has created brand recognition and preference through well-designed products, our programmes to delight customers. These initiatives started as company initiatives but staff now owns them — they are driven by staff who are rewarded by their efforts invested in CSR. Corporate Social responsibility is real in KAL because it is centred in the hearts and minds of our people and has been fully integrated into our core business to continuously prove our long term commitment to support Thai communities, the Thai economy and the Thai environment by changing policy cover to be natural materials and handmade fabric to help local communities earn a living as well as preserving environment. KAL is practicing corporate social responsibility in a manner that generates significant returns to business and communities. In other words, the more we grow the higher is the quality of life of people in local communities and we know our customers care about this issue.
We enter 2009 very confident. We have excellent products with major guarantees that delight our customers in these times of financial crisis.
We are expecting a year of further excellent growth and expansion. And yes, we will be doing more on the Corporate Social Responsibility front — once started this can never stop. Existing projects with PDA, SCAD, AXA Hearts in Action, Policy covers, monitoring our greenhouse emissions etc. will be further supported and in 2009 we expect to add another village to the PDA initiative with Khun Meechai’s help.
We are truly attentive to our customers’ needs. To prove this, we are planning to launch the new innovative sales tool, “Customer Choices” or commonly known as “Needs Based Selling”, later this month. This needs based selling approach is a key for our distributors to being able to come up with a product proposition that reflects the priority financial needs of our customers and it empowers customers to freely choose to buy, instead of having to simply accept the product on offer. This new selling process will help improving customers’ satisfaction as well as retention of our business.
Krungthai AXA Life is a Thai company. It is also part of the world-wide powerhouse AXA. We have a strong presence in every part of Thailand through Krungthai Bank (almost 800 branches) and through our very strong GA and branch network. We believe in delighting our customers — we intend to be “available, reliable and attentive” to their every need. As CEO I am looking forward to 2009 with excitement — I know how strong we are. It will be another Banner year for KAL. The next strategic period is about achieving Ambition 2012 where we expect to double value and triple profits. Join us in future Press conferences and listen to the success story that is Krungthai AXA Life as it unfolds. Exciting times are ahead. Further landmarks will be achieved as we push on.
For more information, please contact
Sukanya Isaranuwatchai
+66-2723-4000 ext. 3525
Krungthai-AXA Life Insurance Co.,Ltd.
Email : [email protected]