56-1 One Report / Annual Report 2021 Thanachart Capital Publ ic Company Limited 137 Sources of Funds TNI’s sources of funds were mainly from shareholders’ equity. On 8 December 2021, there were changes in TNI’s major shareholdings, from Thanachart Capital and Scotia Netherlands Holding B.V. (BNS) which held 50.96 percent and 49.00 percent respectively to (1) Thanachart Capital, (2) Scotia Netherlands Holding B.V. and (3) TMBThanachart Bank which held 50.96 percent, 39.00 percent and 10.00 percent respectively. Liquidity Net cash of TNI in 2021 amounted to 366 million baht. Of the net cash, 1,351 million baht was provided by operating activities, 40 million baht was used in investing activities, and 945 million baht was used in financing activities. In this connection, net liquidity ratio of TNI amounted to 650 percent, which was well above the minimum requirement of 100 percent imposed by the OIC. Factors or Events that Might Significantly Affect Future Financial Position or Operations In 2021, the COVID-19 situation around the world, including Thailand remained serious. As a result, insurance companies sold a considerable amount of COVID-19 policies, resulting in a significant increase in COVID-19 premiums. However, insurance claims against COVID-19 also increased. As for TNI, the company was little impacted by the above-mentioned. Its operating performance remained continuously strong, thanks not only to its adherence to the prudent and cautious underwriting policy but also to the Board of Directors and the right to the point risk assessment process that placed emphasis on selling insurance products in which TNI had expertise in order to command a large market share. In particular, its auto insurance accounted for 86 percent of its sales revenue while other types of insurance accounted for the remaining 14 percent. In this connection, TNI was able to control and manage the claims by keeping the loss ratio at 52 percent. The year 2022 will be another year that poses challenges for doing business as Thailand is still faced with the COVID-19 pandemic and the gradual economic recovery. Based on the forecast made by the Thai General Insurance Association, non-life insurance is expected to grow by 1.5 - 2.5 percent with total premiums received amounting to 267,100 - 269,800 million baht. It is likely that the growth of premium will be slow as COVID-19 policies are stopped from being sold. The premiums which replace COVID-19 premiums will be those from auto insurance, thanks to the government’s measure to open the country as well as strong interest in electric vehicles and cars which make more use of technologies. It is anticipated that auto 2021 2021 2020 2020 2019 2019 2018 2018 2017 2017 Net Profit Retained Earnings (Unit: Million Baht) 1,051 1,042 1,449 745 746 347 4,548 4,260 768 648 (Unit: Million Baht)
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