TQM Corporation, a SET-listed insurance broker, has signed a contract to acquire a 51% stake in True Life Broker Co and True Extra Broker Co with a total investment of 266 million baht.
The company aims to expand its businesses through the deal and gain a stronger footing in the insurance and life insurance markets. TQM expects to achieve a total premiums target of 25 billion baht in 2021 and 50 billion in 2026.
Unchalin Punnipa, chairman and president of TQM, said True Life Broker will serve as a juristic life insurance brokerage with a retail customer base of more than 500,000 and continuous growth in revenues.
Under the deal, TQM invested 250 million baht in True Life Broker and expects premiums from life insurance to exceed 1 billion baht, with over 120 million baht in revenues and 40% in profits in 2021.
For non-life insurance, TQM invested 16 million baht in True Extra Broker, a non-life insurance brokerage that has a retail customer base of 300,000. The company expects to gain more than 100 million baht in premiums from non-life insurance, with over 10 million baht in revenues and over 30% in profits in 2021.
According to Mr Unchalin, TQM expects the joint venture with the two companies to serve as a stepping stone for TQM to expand its customer base into corporate customer bases and boost growth in its businesses, especially life insurance brokerage businesses.
