Allianz CP General Insurance is upbeat about its operating performance, forecasting 10% growth this year despite the poor economy and expectations of zero growth for the country's general insurance industry.

"The first half was a very tough period for the industry - particularly for the segments which are heavily reliant on other industries and on sectors such as exports, new car sales and large investment projects, which were in big trouble," said president and CEO Pakit Iamopas.

"We expect that the industry will recover in line with the improving economy and with exports and large investments - notably for the government's megaprojects - that are expected to get off the ground late this year."

The joint venture, formed in 2000 by Thailand's CP Group and Germany's Allianz, reported premiums of 2.1 billion baht last year, 9% up on 2007.

The company has grown steadily by an annual average of 17% over the last five years, outperforming the market average of 10% a year.

Business growth has been mainly due to the company's business restructuring plan, implemented over the last four years to penetrate the retail sector and businesses outside the CP Group.

Sales to companies outside the CP Group have grown in recent years from one-third to two-thirds of sales.

The company projects growth of about 10% this year but its sales were down 2.12% year-on-year to 728.56 million baht over the first five months of 2009, according to figures from the Office of Insurance Commission (OIC).

To overcome unfavourable market conditions over the rest of the year, the company will pursue growth mainly through more affordable products, better services and branding, said Mr Prakit.