LPI CAPITAL NET PROFIT SLIPS
Marginal decline to RM91.81m on slower growth in general insurance sector
LPI Capital Bhd’s net profit for the third quarter (Q3) ended September 30 this year, fell marginally to RM91.81 million, from RM92.17 million a year earlier amid a challenging economic backdrop that affected the demand for general insurance.
In a filing with Bursa Malaysia yesterday, the insurer said revenue eased four per cent year-onyear to RM390.59 million, mainly driven by a 5.5 per cent, or RM20.9 million, decline in gross earned premium from its general insurance segment.
Founder and chairman Tan Sri Dr Teh Hong Piow said this year remained challenging for the general insurance industry as the global economic conditions remained volatile, affecting the economic prospects of the emerging markets.
“On the domestic front, the property market has not recovered from oversupply and weak demand position while major infrastructure projects have been put under review, affecting the demand for general insurance.
“The general insurance industry reported a mere 0.7 per cent growth for its gross written premiums in the first six months of this year,” he said.
Teh said Lonpac Insurance Bhd, a wholly-owned insurance subsidiary of the group, was similarly affected by the slower industry growth as it registered a lower gross premium income for the quarter under review, RM378.1 million compared with RM416.6 million, reported in the previous year’s corresponding period.
“As an active player in the insurance for infrastructure projects, we were affected by the slowdown in the implementation of the projects,” he added.
On current year prospects, the group said it would continue to focus on improving quality standards and operational efficiencies to prepare for the new competitive landscape.
The company added that investment on technology was ongoing to build alternative channels of distribution.