<article><a href="http://www.tuneinsurance.com/th/en/index.html" target="_blank">Tune Insurance PCL</a> (TIPCL), a relatively new Thai non-life insurance company, is planning an initial public offering (IPO) in the first quarter of next year. It plans to use the proceeds from the IPO for inorganic expansion in the domestic market.</article>

<a href="http://www.tuneinsurance.com/th/en/index.html" target="_blank">Tune Insurance PCL</a> (TIPCL), a relatively new Thai non-life insurance company, is planning an initial public offering (IPO) in the first quarter of next year. It plans to use the proceeds from the IPO for inorganic expansion in the domestic market.
TIPCL, an associate of Tune Ins Holdings (TIH), which has a registered capital of 300 million baht ($9.15 million), has appointed Thanachart Securities as its financial advisor for the IPO, said the company’s chief executive officer Julpas Tom Kruesopon.
“Currently, there are around 61 insurance companies in the country and 40 of them do not have a strong financial status. Hence, after raising fund from IPO, we are looking at opportunities to merge or acquire them,” he said.
The company that is planning its listing in the Stock Exchange of Thailand, is in the process of preparing the financial documents; so further details of IPO cannot be disclosed, said company officials.
A group of Thai investors together with Malaysia-based Tune Ins Holdings (TIH) had acquired Thailand-based<a href="http://www.osotspa.com" target="_blank"> Osotspa</a> Insurance, with a total investment of 700 million baht ($21.34 million) and changed its name to Tune Insurance in September 2014.
Now, 49 per cent of the TIPCL is held by TIH and <a href="http://www.airasia.com/" target="_blank">Air Asia Berhad</a>, both of which are founded and run by Tony Fernandes; 51 per cent of the stake is held by a group of Thai investors, comprising Julpas Tom Kruesopon, Prasith Srisuwan and the Osotspa Group.
Going Micro: insurance for all
Jupas said that only 26 per cent of the Thai population has insurance. “This reflects that Thai people do not give the important to the insurance, or they cannot afford the premium fee especially those who are labourers . This is the area that we are think will provide huge room for TIPCL to grow,” he said.
“We are going to play the market that nobody has touched before. We plan to use the same strategy as a low cost airlines, to provide insurance for everyone,” said TIPCL’s CEO, who had taken a part to push the AirAsia business successfully in Thailand.
On December 16, TIPCL will launch the first micro insurance product in Thailand in collaboration with FSMART, an operator of an online top-up machine service known as <a href="http://www.boonterm.com/" target="_blank">Boonterm</a>.
“The clients can buy the insurance via 40,000 units of Boonterm machine nationwide. We don’t have agents and plan to operate everything on electronics. This will help save operation cost of up to 40 per cent ,helping us offer insurance at the incredible low price to everyone,” he added.
The insurance premium will start from 10 baht-100 baht per month and the insured will get 1000 times the benefit of the premium fee, they pay. The payment will be transferred directly to their accounts within 24 hours after the required documents are received.
This year it targets to generate the revenue of 300 million baht ($9.15 million) with the net profit of 97 million baht ($2.95 million).
After it launches the micro-insurance campaign, the company expects to raise its revenue to one billion baht ($30.48 million) and the net profit to 300 million baht in 2015, and double both the revenue and the net profit in 2016 to two billion baht ($60.98 million) and 600 million baht ($18.29 million), respectively.

Tune Insurance plans IPO for Q1 in 2015

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Tune Insurance plans IPO for Q1 in 2015

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