LPI for the 1st Quarter ended 31 March 2023, reported a 12.1% increase in Profit Before Tax to RM91.4 million, as compared to RM81.5 million in the previous corresponding period. Its Net Profit Attributable to Shareholders registered a creditable 13.7% improvement to RM73.8 million from RM64.9 million reported in the 1st Quarter of FY2022 (Q1 2022).
The group said its improved results were mainly due to the better performance of its investment portfolio. The Investment Return of the LPI Group for the Quarter under review registered an impressive 72.9% jump from RM24.7 million reported in FY2022 to RM42.7 million. The increase in Investment Return was mainly contributed by the fair value gains of RM10.3 million as opposed to losses of RM4 million in Q1 2022, attributed to the recovery in the bond market. Net Return on Equity increased to 3.6% for Q1 2023 from 3.0 while Earnings Per Share increased to 18.53 sen from 16.29 sen.
Group Revenue for the period under review increased by 11.3% to RM463.3 million from RM416.1 million registered in Q1 2022, as a result of higher Insurance Revenue and Investment Income. Lonpac Insurance Bhd (Lonpac), the wholly-owned insurance subsidiary of the Group, similarly reported commendable results with Profit Before Tax surging 22.3% to RM81.8 million from RM66.9 million in the previous corresponding period. Higher Investment Returns contributed significantly to
its increased profit.
However, the group saw its claims performance deteriorate with Net Claims Incurred Ratio increasing to 51.8% from 44.7% reported in Q1 2022. With the Management Expenses Ratio at 20.1% and Net Commission Ratio at 7.6%, Lonpac registered a higher Combined Ratio at 81.2% as compared to 77.0% achieved in FY2022. As a result, its Insurance Service Result came in 8.4% lower at RM61.0 million from RM66.6 million recorded in Q1 2022
