2 months ago
12 
PETALING JAYA: LPI Capital Bhd achieved a 0.6% marginal increase in its profit before tax for its third quarter ended Sept 30 to RM112.1 million from RM111.4 million reported in the previous corresponding quarter while its net profit registered 1.8% lower at RM86.2 million from RM87.8 million.
LPI’s investment income for the quarter under review was partly affected by lower dividend and interest incomes from its investments. The group’s net return on equity increased to 4.9% from 4.6% previously while earnings per share reported marginally lower at 21.63 sen.
Meanwhile, Lonpac Insurance Bhd, the group’s wholly owned insurance subsidiary, recorded an impressive result in the third quarter with profit before tax improving by 15.6% from RM97.4 million reported in the previous corresponding quarter to RM112.6 million while its underwriting profit registered a 14% increase to RM86.3 million from RM75.7 million.
“The strong technical results of Lonpac were attributed to lower claims incurred ratio of 39.5% as compared to 43.6% reported in the previous corresponding quarter. Despite the dampened economic conditions which affected demands for insurance, Lonpac managed to maintain its gross premium income at RM380.6 million while its net earned premium income registered 1.6% lower to RM254.2 million from RM258.3 million previously due to higher technical reserves,” said group chairman Tan Sri Teh Hong Piow.
For the first nine months, the group’s net profits stood at RM241.5 million, a 2.4% improvement over RM235.76 million reported in the same corresponding period of the previous year.
Meanwhile, its revenue stood at RM1.2 billion, a 0.4% decline from RM1.203 billion reported previously.
Lonpac’s profit before tax improved by 8.7% to RM293.5 million from RM270 million reported in its previous corresponding period while its underwriting profit also registered an impressive 8.6% improvement to RM226.2 million from RM208.3 million achieved previously.
The group booked in gross premium income of RM1.2 billion for the period under review while its net earned premium income registered 0.4% lower at RM742.8 million.
Teh commented that the various additional economic stimulus announced recently by the government is expected to further support the government’s efforts to revive the economy.
“For the group, we need to continue assessing the range of possible future scenarios and develop corresponding strategic actions to address these possible scenarios in order to thrive in the new reality,” he said.
English (United States)