LPI Capital’s net profit increases 18.5pc in Q3
KUALA LUMPUR: LPI Capital Bhd’s net profit increased 18.5 per cent to RM92.17 million in the third quarter (Q3) ended September 30, from RM77.77 million recorded in the same quarter last year.
The company said the growth was largely contributed by profit from the general insurance segment, which increased by 20.4 per cent to RM102.8 million, from RM85.4 million in the third quarter of last year.
Underwriting profit for the quarter rose 19.9 per cent to RM83.6 million, from RM69.7 million previously, mainly driven by 16.3 per cent growth in net earned premium income and higher release of UPR (unearned premium reserve) during the quarter due to revised accounting estimate in the calculation of UPR as well as lower combined ratio of 63.9 per cent.
LPI Capital said the investment holding segment increased marginally to RM12.2 million, from RM12 million in the corresponding period last year.
Its revenue in Q3 increased 11.9 per cent to RM406.79 million, from RM363.53 million previously.
For the nine months, LPI Capital’s net profit shrunk 35.1 per cent to RM230.79 million, from RM355.77 million due to a reduction in extraordinary gains from the realisation of its equity investment. Revenue in the same period increased 8.2 per cent to RM1.11 billion, from RM1.02 billion last year.
Group founder and chairman Tan Sri Teh Hong Piow said LPI Capital expects technology to be a major factor dramatically affecting the insurance industry with the emergence of disruptive insurtech, as well as a shift in customer expectations.
“In recognition of this, Lonpac Insurance Bhd has established a Digital Strategy Department to leverage on technology to distribute its products, and to further enhance its services.
“We believe investment in technology will enable us to further expand our business segment and strengthen our market position.
“With the improving Malaysian economy and the continuing infrastructure development by the Malaysian government, we are confident the group will be able to report an improved performance for the last quarter of the year,” he said.