LPI CAPITAL Q3 2021 NET PROFIT RISES TO RM105.38 MLN

KUALA LUMPUR, Oct 14  -- LPI Capital Bhd’s net profit for the third quarter ended Sept 30, 2021 (Q3 2021) rose 22.3 per cent to RM105.38 million from RM86.18 million in the same quarter last year.

Revenue increased 8.1 per cent to RM427.91 million from RM395.76 million previously, contributed mainly by an increase in investment income by 72.3 per cent to RM32.5 million.

In a filing with Bursa Malaysia today, the company said the higher profit was contributed by the strong underwriting result of its wholly-owned insurance subsidiary, Lonpac Insurance Bhd coupled with higher dividends received from its investments.

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Group chairman Tan Sri Teh Hong Piow commented that the Q3 2021 was a particularly a difficult period with the continuing Movement Control Orders (MCO), border closures and production line outages resulting in a significant impact on Malaysian businesses.

“The restriction in the movement has greatly disrupted the group’s business development activities.

“However, despite the many challenges faced in this prolonged pandemic, the LPI Group has remained resilient and continued to report improved performance,” he said.

He noted that the prolonged lockdown and slower economic activities during Q3 have affected the demand for insurance products as Lonpac registered a 6.0 per cent reduction in its gross premium income to RM357.9 million from RM380.6 million in the previous corresponding quarter.

Net Earned Premium Income of Lonpac improved marginally by 0.7 per cent to RM255.9 million from RM254.2 million.

However, he said the restrictive MCOs had resulted in lower claims reported with Lonpac’s claims incurred ratio registering a significant improvement of 33.6 per cent from 39.5 per cent reported in Q3 2020. 

“With management expenses ratio at 18.9 per cent and commission ratio lower at 6.9 per cent, Lonpac’s combined ratio for Q3 2021 recorded an impressive 59.4 per cent compared to 66.0 per cent in the previous corresponding period,” he said.

He said with the lower combined ratio, underwriting profit of Lonpac surged by 20.4 per cent to RM103.9 million for the quarter under review.

-- BERNAMA