Southeast Insurance Co. to close

Thai Group Holdings (TGH) Plc has recently informed in a bourse filing that it had shut down its Southeast Insurance Co because of rising claims for Covid-19 insurance payouts. However, the company has confirmed payouts for customers and stakeholders.

The TGH announcement said Southeast Insurance had THB1.8 billion worth of net assets left as of Jan 1, enough to pay policyholders and stakeholders and compensation to employees.

TGH’s letter to SET said its major shareholder, TCC Group, gave about THB8.06 billion for Southeast Insurance to pay Covid-19 infection claims. Southeast Insurance had been hurt by its reinsurance contract with Thai Insurance.

TGH based its decision on the assumption the impact of the spread of the Omicron variant of Covid-19 would be too great for Southeast Insurance to meet in the near future, according to a news report.