SMK facing liquidity crisis as liabilities surpass assets

The Syn Mun Kong Insurance Plc (SMK), overseen by the Office of the Insurance Commission (OIC), is facing significant liquidity issues and has been given 60 days to solve these problems and raise capital. However, the OIC suggests that SMK is unlikely to comply within the given timeframe.

SMK’s total liabilities have surpassed its assets, amounting to 30 billion baht, according to Somporn Suebthawilkul, president of the Thai General Insurance Association. If SMK’s license is revoked, the financial burden will shift entirely to the General Insurance Fund, which holds less than 1.4 billion baht, a figure that doesn’t include the financial burden from the closure of four insurers last year due to Covid-related losses.

After the Central Bankruptcy Court dismissed SMK’s rehabilitation petition on December 15, the OIC directed SMK to temporarily halt the acquisition of new…