PETALING JAYA: LPI Capital Bhd’s net profit surged 18.5% to RM92.17 million in the third quarter (Q3) ended Sep 30, 2017, from RM77.8 million in the previous corresponding quarter, largely due to higher profit from general insurance segment.
Revenue grew 11.9% to RM406.8 million during the quarter, compared with RM363.5 million in the same period last year, mainly driven by strong growth in gross earned premium of 12.7% or RM42.6 million from its general insurance segment.
For the nine-month period, its net profit, however, declined 35.1% to RM230.8 million, against RM355.77 million a year ago, while revenue increased 8.2% to RM1.11 billion, from RM1.02 billion previously.
LPI founder and chairman Tan Sri Teh Hong Piow said in a statement that the group’s strong performance was contributed by the outstanding results of its wholly-owned insurance subsidiary Lonpac Insurance Bhd (Lonpac), whose gross premium income for the third quarter grew 34.6% to RM416.6 million from RM309.6 million registered in the previous corresponding quarter.
With its prudent underwriting policy and costs control measures, he said Lonpac managed to improve its combined ratio to a new record low of 63.9% for the third quarter of 2017, reduced from 65% reported in previous corresponding quarter.
As a result, he said its underwriting profit registered a strong improvement by 19.9% to RM83.6 million from RM69.7 million previously, despite its claim incurred ratio having increased marginally to 40.3% from 38.9% previously.
Going forward, Teh said the group foresees technology as a major factor which will dramatically affect the insurance industry, with the emergence of disruptive insurtech as well as a shift in customer expectations.
In recognition of this, he said Lonpac has established a digital strategy department to leverage on technology to distribute its products and to further enhance its services to the customers.
“We believe that investment in technology will enable us to further expand our business segment and strengthen our market position.
“With the improving Malaysian economy and the continuing infrastructure development by the Malaysian government, we are confident that the group will be able to report an improved performance for the last quarter of the year,” he added.
At 2.54pm, LPI Capital shares rose four sen to RM18 with a total of 68,800 shares traded.
Read the original story on: TheSunDaily.My