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LPI Capital records higher Q1 profit of RM77.15 mln

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KUALA LUMPUR: LPI Capital Bhd recorded a profit of RM77.15 million in the first quarter (Q1) of its financial year ended March 31, 2019, compared with RM72.5 million in the same quarter last year, backed by stronger growth in its insurance subsidiary, Lonpac Insurance Bhd.

Revenue for the period under review increased 3.1 per cent to RM392.7 million from RM381.0 million in the previous corresponding quarter.

LPI Group founder and chairman Tan Sri Teh Hong Piow said despite the operating environment remaining challenging, the group managed to improve its performance in Q1 2019.

“Lonpac has reported a marginal improvement in its performance in Q1 backed by premium income which registered a stronger growth of 8.9 per cent to RM235.6 million from RM216.4 million in the previous quarter,” he said in a filing with Bursa Malaysia yesterday.

Teh said the higher net earned premium was the result of a lower reinsurance ratio of 39 per cent for the quarter compared with 42.5 per cent reported previously.

He said Lonpac’s claims incurred ratio increased slightly to RM47.4 per cent from 47.1 per cent, management expense ratio at 22 per cent and commission ratio at 5.2 per cent, resulting in combined ratio of 74.6 per cent, slightly higher from 72.4 per cent reported in the previous corresponding quarter.

“With a higher combined ratio, but an improved net earned premium written, Lonpac was able to register an underwriting profit of RM59.6 million,” he added.- Bernama

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