LPI 3Q net profit up 6.4% to RM64.2m

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KUALA LUMPUR: LPI Capital Bhd’s net profit rose 6.4% to RM64.2 million for the third quarter ended Sept 30, 2014 (3QFY14) from RM60.36 million a year ago, largely contributed by its wholly-owned insurance subsidiary Lonpac Insurance Bhd (LPI).

Revenue grew 6.3% to RM301.24 million from RM283.51 million in 3QFY13. Earnings per share for 3QFY14 was higher at 29.14 sen compared with 27.4 sen a year ago.

For the first nine months (9MFY14), LPI’s net profit jumped 11.3% to RM165.96 million from RM149.05 million a year ago on higher gross premium recorded by Lonpac, which grew 3.6% to RM893.7 million from RM862.4 million.

LPI’s revenue was up 5.2% to RM870.53 million from RM827.37 million in 9MFY13. Earnings per share for 9MFY14 improved to 75.33 sen compared with 67.65 sen a year ago.

“The growth in both the gross and net earned premium has translated into better underwriting results,” said LPI in a filing with Bursa Malaysia yesterday.

“The underwriting profit for the nine months registered a commendable 13.3% increase from RM128.7 million to RM145.8 million,” it said.

In a statement, LPI founder and chairman Tan Sri Teh Hong Piow said while its motor insurance is the main target for the group’s market share expansion, it is keen on competing in other non-motor insurance classes.

“The group believes that while we continue to expand our market share in our targeted portfolios, we will exercise discipline in risk selection and prudency in claims management.

“The group will continue to focus its business plan on growth expansion in the targeted portfolios and ensure that the underwriting performance of Lonpac be further enhanced,” he added.

This article first appeared in The Edge Financial Daily, on October 9, 2014.