KUALA LUMPUR (Oct 14): LPI Capital Bhd saw its net profit for the third quarter ended Sept 30, 2021 (3QFY21) rise by 22.29% to RM105.38 million against RM86.18 million in the same period last year due to higher profit contributed by the strong underwriting result of its wholly-owned insurance subsidiary Lonpac Insurance Bhd. 

As a result, earnings per share increased to 26.45 sen from 21.63 sen. 

In a Bursa Malaysia filing on Thursday, the group said its quarterly revenue jumped slightly by 8.13% to RM427.91 million from RM395.76 million a year ago, driven by an increase in its investment income and growth in gross earned premium of 4.9% or RM18.5 million from its general insurance segment. 

The group however did not declare any dividend to its shareholders. 

For the nine-month period ended Sept 30, the group’s net profit rose by 12.47% to RM271.61 million against RM241.5 million registered in the same period the previous year while revenue increased by 7.5% to RM1.29 billion from RM1.2 billion, underpinned by growth in its general insurance segment.

On a quarterly basis, the group’s net profit leapt by 25.58% from RM83.92 million reported in the immediate preceding quarter while revenue edged higher by 1.89% from RM419.99 million. 

Commenting on the group’s financial performance, LPI Capital’s chairman Tan Sri Dr Teh Hong Piow said that despite the many challenges faced in this prolonged pandemic, the group has remained resilient and continued to report improved performance for 3QFY21. 

“The rollout of the 12th Malaysia Plan (12MP) by the government will chart the course of growth for the country amid the Covid-19 crisis.

“Lonpac Insurance Bhd will continue to demonstrate the value of insurance to its clients and the community it operates in and its investment in digitalization will help to accelerate the access to a wider segment of the market. 

“Despite the prolonged recovery period from Covid-19, we are confident of the growth prospects of the insurance industry,” he said in a statement. 

At noon break on Thursday, shares in LPI Capital traded two sen or 0.14% higher to RM14, valuing the company at RM5.58 billion.