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Public company info - Target Insurance (Holdings) Ltd. , 06161.HK
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Target Insurance (Holdings) Ltd., 06161.HK - Company Profile
Chairman Cheung Haywood、Ng Yu
Share Issued (share) 626,000,000
Par Currency
Par Value 0.0
Industry Insurance
Corporate Profile Business Summary: The Group is principally engaged in the writing of direct general insurance business. Performance for the year: Net insurance premium revenue increased by 10.3% to HK$397.9 million (2018: HK$360.8 million). Operating loss was HK$157.1 million (2018: HK$71.9 million), representing an increase of 118.6% from last year. Loss before tax was HK$193.2 million (2018: HK$125.8 million), representing an increase of 53.6% from last year. Loss for the year was HK$198.5 million (2018: HK$126.8 million), representing an increase of 56.6% from last year. The Group’s basic loss per share was HK38.07 cents (2018: HK24.32 cents), representing an increase by 56.5% from last year. Business Review： Motor Insurance Business The Group’s key insurance products include third party insurance and comprehensive insurance for motor vehicles and the majority of the Group’s customers are owners of taxi and PLB in Hong Kong. For third party insurance, the Group insures against third party legal liabilities. For comprehensive insurance, the Group insure against: (i) loss of damage to motor vehicle and (ii) third party legal liabilities. (1) Other motor vehicles mainly include private cars, goods carrying vehicles and motorcycles During the year ended 31 December 2019, the Group’s motor business was stagnant. The motor business increased by 0.7% to HK$430.9 million (2018: HK$428.0 million). The Group’s business on other motor vehicles motor insurance was picking up while the Group’s business on taxi and PLB motor insurance was facing keen competitions. The gross premium written on taxi and PLB motor insurance presented 74.2% of gross premium written on motor insurance for the year ended 31 December 2019 (2018: 76.9%). These two business segments were largely saturated. The Group’s taxi motor insurance mildly decreased by 1.1% to HK$244.1 million (2018: HK$246.8 million), and the Group’s PLB motor insurance reduced by 8.0% to HK$75.7 million (2018: HK$82.4 million). The Group’s business on other motor vehicles was the Group’s major source of growth which was mainly driven by the Group’s online business platform and development of new insurance intermediaries. The gross premium written increased by 12.4% to HK$111.0 million (2018: HK$98.8 million). Other General Insurance Business The group continued to develop other general insurance products and the Group now offers different personal and commercial insurance products. (1) Others include other general insurance business except motor and employees’ compensation business During the year ended 31 December 2019, the Group’s other general insurance business continued to grow by 299.1% to HK$96.8 million (2018: HK$24.3 million). The Group grew their EC business through selecting business with trusted intermediaries and disciplined underwriting. The Group’s EC business was increased by 305.1% to HK$85.2 million (2018: HK$21.0 million). The Group’s Others business was increased by 259.6% to HK$11.6 million (2018: HK$3.2 million) as the Group developed commercial insurance products supplementing the Group’s EC business, including SME Business Insurance and Contractors’All Risks Insurance. INVESTMENTS The Group invests premiums and other income generated from the Group’s insurance business. The total value of investment portfolio slightly increased by 4.9% to HK$1,025.8 million (2018: HK$978.0 million). The Group’s equity portfolio is decreased by 56.4% to HK$49.5 million (2018: HK$113.4 million). Over 90% of equity securities invested are listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The Group reduced the investments in certificates of deposits by 81.7% to HK$4.5 million (2018: HK$24.3 million). Prospects: For 2020, the Group will hone the Group’s focus on the strategies to write and grow the Group’s business more prudently: Achieving Underwriting Improvement There is no “one size fits all” formula for success in underwriting. The Group’s commercial exposures are particularly heterogeneous, intermediated, qualitative and required case-based assessment. The Group will focus the Group’s effort on disciplined underwriting through the following approaches: Portfolio steering: To strike a balance between consistency in the Group’s risk appetite and the need to continuously calibrate that appetite, the Group will ensure that the Group is willing and able to pull back when conditions are unsustainable. Pricing adequacy: To introduce technical pricing as a core part of underwriting governance and as a benchmark, the Group is thus provided with insight into directional movement of pricing for a portfolio over time. Risk selection: To supplement data-driven analysis, the Group will encourage collective risk discussion and underwriting assessment. Capacity optimization: To encourage dynamic recalibration of limits and retention, the Group will deploy capacity more prudently through deductibles and also through net retention across the portfolio by way of optimal use of reinsurance arrangement. Coverage design: To translate qualitative policy terms and endorsements into quantitative parameters, the Group will carefully control around the Group’s policy wording. Developing Other General Insurance Products The Group will take a progressive approach to develop other general insurance products which suit the needs of local enterprises and individual clients. Notwithstanding the intense competition, the Group develops other general insurance products which can leverage the Group’s strengths, distribution networks and expertise. The Group will also manage the Group’s insurance risk exposures with adequate reinsurance protections. Rebranding The Group’s Corporate Image It is clear from the feasibility study that there is a strong demand for well-planned packaged insurance products to satisfy the insurance needs and services of the Hong Kong market. Transitioning from mono motor insurance business to all general insurance business, Target has rebranded itself for its capability to write a comprehensive range of general business in Hong Kong. To continue with the Group’s rebranding effort, the Group will maintain modest level of branding activities through traditional media (magazine, television commercial, radio etc) to reinforce the Group’s core products and more focused sales and marketing activities for new insurance products throughout the year. Building Up Internal Capacity There are three areas which the Group will continue to invest in 2020 to strengthen the Group’s internal capacity to prepare for the future: Claims Management: To enhance claims handling and settling, the Group will continue to develop resources to guard against fraudulent claims and strive to have fraudulent claims reported to Police. Human Resources: The Group will continue to seek suitable professional talent to join the Group’s team to consolidate the Group’s capacity to deal with the business needs and regulatory developments. Information Technology: To support the adoption of IFPCD, risk-based capital framework and new accounting standards, the Group will continue to upgrade the Group’s information technology systems. The Group will also enhance the Group’s cybersecurity practice to ensure protection of customers’ data on online business platforms. Increasing The Group’s Motor Insurance Business on Other Types of Motor Vehicles The Group will continue to direct the Group’s effort towards the development of the Group’s business on other types of motor vehicles. In addition to online business platforms for private cars and commercial vehicles which provide a channel for them to reach out to the Group’s customers directly, the Group will also explore different distribution channels to further grow the Group’s motor business. The Group is proactively forming alliances with other business partners to provide all rounded services to the Group’s customers and extend the Group’s reach to the Group’s target customers. The Group’s dedicated customer service team can promptly attend to all customers’ enquiries and provide a better experience to the Group’s customers. Strengthening Relationship with Insurance Intermediaries Actively managing the Group’s relationship with existing agent network and developing new relationship with other insurance intermediaries become the key to maintain the Group’s market position. The Group will continue to participate in and sponsor activities organized by industry organizations and media partners.

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