Ngern Tid Lor Public Company Limited (“TIDLOR” or “the Company”), led by Mr. Piyasak Ukritnukun, Managing Director, stated that an overview of the company’s business performance in the past, in addition to the continuous growth of the vehicle title loan business, currently boasting over 100 billion baht in outstanding loan portfolio and firmly establishing TIDLOR as a market leader. In parallel, the company has also focused on expanding its insurance brokerage business, driven by a commitment to increase public access to insurance coverage. As part of this initiative, TIDLOR pioneered the introduction of 0% cash installment service for car insurance premiums, which was gained widespread popularity among consumers due to its obvious benefits and has since become a standard offering in the industry. Today, many insurance brokers have adopted this service model, making it a widely accepted solution for customers.
The overall performance of TIDLOR’s insurance brokerage business has shown that transactions from insurance customers surpassing those from loan applications by approximately threefold. Notably, 9 out of 10 policies sold were purchased by customers specifically seeking insurance, indicating a distinct group from loan customers. This highlights the company’s ongoing success in building strong brand awareness for the insurance brokerage service. Over the past six years, TIDLOR’s non-life insurance brokerage business has achieved an average annual growth rate of 47.3%, significantly outpacing the industry average of 4.5%. This demonstrates the Company’s growth rate 10 times faster than the market average, highlighting the strength and potential of the of the Company’s insurance operations.
Ms. Athitaya Phoonwathu, Chief Insurance Officer, reported that in the first six months of 2024, the company generated total non-life insurance premiums of 4.856 billion baht, reflecting a 22% YoY increase. This growth is attributed to the Company’s diverse and accessible range of insurance products, along with comprehensive sales and service channels. These include face-to-face interactions at TIDLOR’s branches nationwide, integrated with InsurTech platform. Having developed and utilized insurance technology for over a decade, TIDLOR continues to leverage this expertise to drive sustained growth by offering the broad range of insurance products tailored to meet the diverse needs of customer base under several brands.
- “Shield Insurance” Brand (rebranding from TIDLOR Insurance Broker) – This face-to-face insurance brokerage business is recognized as the number one provider of personalized insurance consultations through over 5,000 expert brokers across more than 1,700 branches nationwide. Shield Insurance offers a wide range of insurance products covering auto, personal, and home from more than 15 leading insurance partners. Customers also benefit from the option to pay insurance premiums in 0% cash installment. This success is underpinned by the implementation of the Insurance on Tablet technology, developed in-house to support branch employees across the country. This tool enables staff to present insurance products and coverage options that precisely match customer needs, delivering accuracy and efficient service. As a result, Shield Insurance has become a preferred insurance broker for retail customers who seek close consultation from professional brokers.
- “Areegator” Brand – An innovative online insurance platform operated through a network of member insurance brokers, under the concept of “Sincere, Understanding, Growing Together.” Leveraging advanced InsurTech solutions, Areegator currently supports over 9,000 members, a number that continues to grow, by providing easy access to aN efficient insurance sales management system and a diverse range of insurance products. These include coverage for vehicles, individuals, and homes from more than 15 leading insurance partners. A key advantage of the platform is that members can sell insurance without requiring initial capital, and they can also offer customers 0% cash installment payment options for premiums without having to advance their own funds. Furthermore, members can generate additional income by referring vehicle title loan services to customers within their local communities. This unique integration creates an effective merge of insurance and lending businesses into one seamless service model.
The performance of Areegator is expected to demonstrate continuous growth in 2024. This year, the Company aims for a significant increase in insurance premiums, projecting growth by more than 19 times compared to 2020, the platform’s inaugural year. Additionally, Areegator members have seen consistent income growth, with average earnings exceeding 150,000 baht per person in 2023. Increasing member income and fostering mutual growth remain core objectives for Areegator. Powered by Software-as-a-Service (SaaS) technology, Areegator operates as an online insurance platform through its network of member brokers and independent agents. This technological backbone allows the platform to effectively penetrate small local communities and broaden its market reach.
- “heygoody” Brand – A dedicated digital insurance brokerage platform, heygoody is specifically designed for retail customers who prefer not to be contacted via phone and want the convenience of purchasing insurance independently. It offers the freedom to choose and purchase insurance online, available 24/7 with immediate coverage. Customers can compare premiums and policy terms from over 15 leading insurance partners and enjoy flexible payment options, including 0% cash installments for up to 10 months. These installments can be structured as equal monthly payments or with the first installment as low as 1,000 baht, along with credit card options. The platform is designed to be user-friendly, allowing customers to easily understand coverage terms and select the protection that best suits their needs, at a competitive price, with maximum convenience. This solution stems from a deep understanding of customer preferences and builds upon the company’s existing insurance brokerage technology. As a result, heygoody was developed and launched in a short timeframe, offering a seamless and efficient digital experience for customers.
Since its launch in September 2023, heygoody has received overwhelmingly positive feedback, attracting over 2 million visitors to the website. Data insights reveal that more than 40% of customers purchased insurance outside regular business hours, and a customer satisfaction survey showed that over 96% of users were satisfied with the service provided. This strong reception reflects the success of this new online insurance brokerage, which has quickly earned customer trust and demonstrated a deep understanding of the behavior and needs of modern consumers. In 2024, heygoody received over 12 prestigious awards across Asia and globally, recognizing its excellence in platform development and marketing strategies that aligns with both business objectives and customer expectations. The company remains committed to expanding its insurance brokerage business by selecting the most suitable insurance products to cater to an increasingly diverse customer base. Notably, heygoody operates without the need for telesales staff, further underscoring its innovative, customer-centric approach in the digital insurance market.
Mr. Piyasak stated that 73% of insurance purchases in Thailand are made through brokers, underscoring the significant role of brokers in the market. There are more than 80,000 independent insurance brokers in the country, many of whom operate under traditional models with limited access to advanced technology. The non-life insurance market in Thailand is valued at over 285 billion baht, but the top 10 brokers collectively hold only 29% of market share, indicating a highly fragmented market with no dominant players. Additionally, with 19.8 million registered vehicles in Thailand, over 46% remain uninsured under voluntary car insurance, highlighting a substantial untapped market. TIDLOR’s strength in leveraging technology for its insurance brokerage business positions the company to capitalize on these growth opportunities. The combination of a fragmented market, unserved customer segments, and the company’s technological capabilities creates a strong foundation for future business expansion and sustained growth in the insurance sector.
Building on the success of the new ventures, Areegator and heygoody, TIDLOR is set to restructure and establish a new company to unlock the full potential of insurance brokerage business. This strategic move aims to position TIDLOR as a leading player in InsurTech Platform space, a critical piece in enhancing the TIDLOR Ecosystem. The goal is to create a robust financial and insurance ecosystem that strengthens the company’s broader business operations. Through this initiative, TIDLOR’s ultimate goal is to serve as a reliable and accessible financial partner while expanding public access to insurance coverage, fostering sustainable growth across all business segments in the long term.
In June 2024, following approval from the Extraordinary General Meeting of Shareholders (EGM), TIDLOR announced its shareholding and management restructuring plan which included the establishment of a new public limited company to operate as a holding company under the name Tidlor Holdings Public Company Limited (“Tidlor Holdings”).This restructuring aims to reduce investor confusion related to stock dividend payments and enhance flexibility for cash dividend distributions. It is expected to address concerns about the dilution of stock price and earnings per share (EPS), thereby strengthening investor confidence in the company’s long-term potential. The new restructure will enhance operational flexibility in both the lending and insurance brokerage businesses, bolstering competitiveness and opening up opportunities for business expansion into related businesses. Moreover, it will facilitate strategic partnerships through mergers and acquisitions or joint ventures. The holding company structure will better support the group’s long-term growth by facilitating business diversification and fostering collaboration with potential business partners, positioning TIDLOR for sustained success and competitiveness in the evolving market.
In alignment with its strategic restructuring plan, TIDLOR has initiated the establishment of a new company (NewCo) to operate a non-life insurance brokerage business in the form of an InsurTech Platform in the future. The Company will transfer the related businesses, including Areegator and heygoody brands, along with other related assets, to NewCo after Tidlor Holdings is listed on the Stock Exchange of Thailand (SET). Following the transfer, Tidlor Holdings will acquire a 99.99% of share in NewCo. This new company formation is part of TIDLOR restructuring plan, aimed at increasing the efficiency and flexibility of the organizational structure to better align with the specific strategies and requirements for each business. The restructuring will also enhance governance and risk management by separating the management of distinct business units, each with its own unique operational characteristics.
TIDLOR’s restructuring into a holding company is progressing as scheduled, with the company in the process of requesting approvals from relevant regulatory agencies. As part of this process, Tidlor Holdings is expected to process a tender offer to purchase all TIDLOR’s shares through a share swap at a 1:1 ratio, scheduled for the 4th quarter of 2024. Shareholders, investors, and interested parties can stay updated on the company’s developments by visiting the website at www.tidlorinvestor.com.
