1. INTRODUCTION
 

The Board of Directors of TPG wishes to announce that TPT (Company No. 0107555000627), a 49%-owned associate company of TPG, has commenced legal proceedings against the Defendants on 25 November 2022.

2. INFORMATION ON TPT

TPT is a public limited  company incorporated in Thailand with an issued share capital of THB 300,000,000 (equivalent to approximately RM 37,590,000; THB 1 = RM 0.1253), comprising 30,000,000 shares and is a 49%-owned associate company of TPG. The principal activity of TPT is provision of non-life insurance.

3. CIRCUMSTANCES LEADING TO THE CLAIM

CIS was appointed by TPT to act as a reinsurance broker to facilitate reinsurance for the Rubber Authority of Thailand’s ("RAOT") personal accident insurance policy. As part of this arrangement, CIS issued a reinsurance slip dated 14 August 2020 wherein three foreign reinsurers (“the Three Reinsurers”) would provide reinsurance to TPT.

CIS received commissions for facilitating the reinsurance arrangement and collected reinsurance premiums from TPT on behalf of the Three Reinsurers as well as facilitated claims recovery between TPT and the reinsurers.  

Subsequently, TPT was informed by the Three Reinsurers that they were unaware of any reinsurance arrangement relating to the RAOT insurance policy and had not received any reinsurance premiums from CIS. As a result, TPT filed a police report on the matter under the laws of Thailand.

On 25 August 2021, TPT was informed that the sole reinsurer of this insurance arrangement was in fact another reinsurer which did not meet the requirements of TPT’s internal guidelines.

4. PARTICULARS TO THE CLAIM

TPT has now commenced litigation against the Defendants for the sum of THB 463,159,534.76 (equivalent to approximately RM 58,033,889.71; THB 1 = RM 0.1253), not inclusive of interest from the date of filing, for the following reasons:

1. The Defendants caused TPT to enter into an insurance arrangement with RAOT by representing to TPT that the reinsurance arrangement was backed by the Three Reinsurers.
2. The Defendants received reinsurance premiums on behalf of the Three Reinsurers and claimed a commission for doing so, when in fact no reinsurance premiums were paid to the Three Reinsurers.

5. FINANCIAL AND OPERATIONAL IMPACT ON THE COMPANY

Apart from the amount claimed by TPT and the corresponding legal costs, the Claim is not expected to have any other material impact on the earnings per share and the net assets per share of the Company for the financial year ending 31 December 2022.

The Claim is not expected to have any business and operational impact on the Company.

This announcement is dated 25 November 2022.