Friday 29 Mar 2024
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KUALA LUMPUR (Oct 9): LPI Capital Bhd recorded an 18.52% increase in its net profit for the third quarter ended Sept 30, 2017 (3QFY17) to RM92.17 million from RM77.77 million a year ago due to higher revenue from gross earned premiums.

Quarterly revenue, which had grown 11.9% year-on-year to RM406.79 million from RM363.53 million the year before, was mainly driven by strong growth in gross earned premiums of 12.7% or RM42.6 million from its general insurance segment, the group said in a filing with Bursa Malaysia today.

Its investment holding segment, however, recorded a 2.21% decline in revenue to RM13.3 million due to lower interest received.

"The strong performance of the group was contributed by the outstanding results of our wholly-owned insurance subsidiary, Lonpac Insurance Bhd," said Tan Sri Dr Teh Hong Piow, founder and chairman of LPI Capital.

The gross premium income for Lonpac in 3QFY17 had grown by 34.6% to RM416.6 million from RM309.6 million last year.

For the cumulative nine months ended Sept 30, 2017 (9MFY17), revenue was up 8.82% at RM1.11 billion from RM1.02 billion a year ago, contributed by the general insurance segment.

However, net profit over the period was down 35.13% to RM230.8 million from RM355.8 million a year ago due to a reduction in extraordinary gains from the realisation of its equity investment, said Teh.

"If the results had been adjusted to exclude these extraordinary gains, the profit before tax for the period under review would have grown by 11%," he said.

Going forward, the group said it had established a digital strategy department within Lonpac to leverage on technology in order to further distribute its products and enhance its services.

Shares in LPI Capital were down 6 sen at RM17.90 apiece as at noon break today, giving the group a market capitalisation of RM5.94 billion.

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