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Published on September 12, 2007

Living in increasingly uncertain economic times, savers are looking for surer and safer ways to grow their wealth, vice president of marketing Sombat Kullwoot said yesterday.

Bank of Thailand savings bonds, which are selling like hot cakes, are a good indicator that consumers are becoming more cautious in their choice of investment, he said.

"The general sentiment is that consumers want some sort of guarantee," he added.

In addition to protecting benefits at 100 per cent of the sum insured and 105 per cent from the second year, the AACP Special 5 promises a fixed 4-per-cent annual dividend over five years.

Unlike AACP's other investment products such as the Allianz Market Winner 5, only a single premium per policy, at a minimum of Bt100,000 and maximum of Bt20 million, is required. Buyers can choose to keep investing into the fund.

Such flexibility, coupled with the guarantee of initial investment, would fulfil the needs of many consumers in diversifying their portfolio, chief marketing officer Patchara Taveechaiwattana said.

However, she declined to reveal how the company would go about securing the 4-per-cent guaranteed yield, particularly at this time of low interest rates.

Investment products constitute only a small portion of AACP's offerings. Savings and life protection are still the company's bread and butter, she said.

AACP Special 5's customers are classified as "prestige customers" who pay at least Bt300,000 in premiums every year and make up 5 per cent of the insurer's 1.02 million policyholders.

Ki Nan Tsui, The Nation