SET-listed Bangkok Insurance (BKI) reported a net loss of 3.58 billion baht for the first quarter, down 539% from a net profit of 816 million last year, after being hit by surging Covid claims.
The firm's earnings per share (EPS) dropped to -33.63 baht from last year when EPS was 7.67 baht.
Apisit Anantanatarat, chief executive and president, said the spike in net claims from Covid insurance was the main reason for the decline of the company's first-quarter operating results.
He said the loss from insurance business amounted to 5.16 billion baht in the first quarter, a dramatic increase from 443 million baht in the same period last year, while profits from insurance dropped by 5.6 billion baht or 1,265% from last year.
However, the company has reportedly secured sufficient earnings to pay the interim dividend of 3.50 baht per share in an effort to regain investor confidence.
"The company reaffirms its strong financial position with good risk management. BKI remains committed to meeting expectations and creating maximum benefits for our customers, partners, shareholders and stakeholders based on a 75-year long-standing business philosophy," said Mr Apisit.
According to the report, the company gained a total of 6.62 billion baht in premiums in the first quarter, up 7.5% from the same period last year.
The company generated 969 million baht in net profit from investment, up 99.3% from last year, mainly due to the sale of securities.
BKI is among a number of insurance firms facing financial difficulties due to rising Covid claims. Syn Mun Kong Insurance filed a petition for business rehabilitation with the Central Bankruptcy Court on May 17.
