Thai Reinsurance Public Company Limited

The Thai General Insurance Association is pressing ahead with a national disaster insurance system after the Cabinet approved the plan, aiming to begin coverage this October. Dr. Somporn Suebthawilkul, Chief Executive Officer of Dhipaya Group Holdings Public Company Limited and President of the Thai General Insurance Association, disclosed that the government will pay the premiums on behalf of the public, covering roughly 30 million households nationwide, amounting to total premiums of 15 billion baht per year, or about 500 baht per household per year, for three types of peril: floods, windstorms and earthquakes. The project targets total coverage of approximately 75 billion baht, or about five times the premiums the government pays, which represents the maximum liability the insurance system must be prepared to absorb rather than the full amount the government pays directly to the public. On the selection of companies to join the project, preliminary assessment indicates that about 25 insurers may qualify out of 47 companies, based on capital adequacy ratios of 180 to 200 percent, and continuous profitability for no less than two years may also be required. Meanwhile, the reinsurance structure is under discussion for Thailand Reinsurance Public Company Limited, or THRE, to take on risk management. In the initial phase, the fund model or the establishment of a national catastrophe insurance company will not yet be used, since that would require many legal steps and could take at least about two years.

Thai Reinsurance Public Company Limited (THRE) shares rose 3.51% to 0.59 baht after the Cabinet approved in principle the establishment of a national disaster insurance system, which will provide coverage for approximately 30 million households nationwide. The government will subsidize insurance premiums, covering floods, storms, and earthquakes, with a maximum claim payout of 100,000 baht per occurrence per household. In the event of death, beneficiaries will receive 2 million baht per person. This measure shifts the approach from post-disaster relief to proactive risk management, with the Department of Disaster Prevention and Mitigation and the Office of the Insurance Commission tasked to expedite the details and review relevant laws.

The Cabinet has approved a national disaster insurance system covering 30 million households, with the government subsidizing premiums totaling 15.5 billion baht per year. The coverage amounts to 75 billion baht in damages annually. Analysts indicate that THRE and TQR will benefit, while banks and real estate sectors gain indirectly.

Krungsri Securities stated that the mobile cabinet meeting in Songkhla Province, scheduled from August 30 to September 1, 2026, is expected to consider several major projects, including the household disaster insurance project covering 20 million households, which will benefit insurance stocks, especially BKIH, TIPH, MTI, and THRE, as they have opportunities to gain new business. However, the research department assesses that there is not yet sufficient clear information to evaluate the impact on business, so it recommends short-term speculation. All projects under consideration this time have a total budget of approximately 163 billion baht, accounting for 0.86% of GDP, comprising a budget of over 57 billion baht for the five southern border provinces and the second phase of the southern dual-track railway project with three routes, totaling 106.797 billion baht, covering a total distance of 504 kilometers, connecting from Chumphon to Padang Besar.

Shares of Thai Reinsurance Public Company Limited (THRE) rose 5.26% to 0.60 baht after CEO Olam Wongsuraphichet stated the company is confident its H2 performance will continue to grow. In Q2 2026, net profit was 94 million baht, up 15% year-on-year, while H1 net profit surged 205 million baht, up 336%, driven by reinsurance underwriting profit of 165 million baht and a 75% increase in net investment income to 93 million baht, following a portfolio shift toward equities to offset lower interest rates. Reinsurance premiums received fell 5% to 1,376 million baht due to screening out health insurance with high loss ratios.