Friday 29 Mar 2024
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KUALA LUMPUR (Oct 15): LPI Capital Bhd's net profit fell 4.35% year-on-year to RM87.82 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM91.81 million, mainly due to higher claims incurred and lower interest income received.

This resulted in lower earnings per share of 22.04 sen for 3QFY19 versus 23.04 sen for 3QFY18.

LPI recorded 3QFY19 revenue of RM423.84 million, which was 8.51% higher than RM390.59 million in the same quarter last year, according to the group's bourse filing.

For the cumulative nine months ended Sept 30, 2019 (9MFY19), net profit rose 2.48% to RM235.76 million, from RM230.05 million a year ago, while revenue gained 7.01% to RM1.2 billion from RM1.12 billion in 9MFY18.

In a separate statement, LPI founder and chairman Tan Sri Teh Hong Piow said the volatile global economic conditions and ongoing trade disputes continue to affect the performance of the Malaysian insurance industry.

According to Insurance Services Malaysia Bhd, LPI subsidiary Lonpac ranked third in terms of Gross Written Premium in Malaysian general insurance industry with an 8.6% market share as at June 30, 2019.

For Lonpac, its combined ratio for the third quarter of 2019 had also deteriorated to 70.8% from 65.1% previously, while its underwriting profit had declined by 7.9% to RM75.7 million from RM82.2 million. This was mainly due to the unfavourable claims experience reported in medical and miscellaneous accident classes of insurance.

For the nine-month period under review, its claims incurred ratio deteriorated to 45.2% from 41.6% previously, while its combined ratio increased to 72% from 68.7%. With the higher claims reported, Lonpac's underwriting profit was 1.9% lower at RM208.3 million from RM212.4 million in the previous corresponding period.

At noon break, LPI's share price was 10 sen or 0.65% higher at RM15.60, bringing it a market capitalisation of RM6.21 billion.

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