LPI Capital Bhd Group reported its 3rd Quarter results registering a strong increase in Revenue by 14.8% to RM498.4 million
from RM434.0 million recorded in the previous corresponding quarter. The growth it said was largely due to the performance of its General Insurance segment. Group’s Profit Before Tax (PBT) for 3Q2023 similarly posted a commendable 11.2% improvement to RM119.6 million from RM107.6 million recorded in the previous corresponding quarter.
The increase in PBT was mainly driven by higher profit contributions from the General Insurance segment. As a result, Net Profit Attributable to Shareholders rose an impressive 23.0% to RM97.4 million from RM79.2 million year-on-year, partly due to the absence of the one-off Prosperity Tax that was imposed in FY2022. The Group’s Net Return on Equity was reported at 4.5% and Earnings Per Share at 24.45 sen for 3Q2023, against 3.7% and 19.87 sen respectively in the previous corresponding quarter in FY2022.
Lonpac Insurance Bhd (Lonpac), the Group’s wholly-owned insurance subsidiary, posted PBT of RM101.5 million in 3Q2023, representing a 10.3% year-on-year increase from RM92.0 million. The improved profitability of Lonpac was due to higher returns from its investment portfolio and better Insurance Service Result. In 3Q2023, Lonpac’s Insurance Service Result
grew 3.8% year-on-year to RM88.5 million from RM85.3 million. This was due primarily to a lower Net Claims Incurred Ratio which came in at 39.4%, as compared to 43.4% reported in 3Q2022. Both Motor and Marine Insurance business segments registered an improvement in claims experience for the quarter under review. With Management Expenses Ratio and Net Commission Ratio coming in at 20.0% and 8.7% respectively, Lonpac’s Combined Ratio for 3Q2023 increased marginally to 71.1% from 70.9% recorded in 3Q2022. For the quarter under review, Gross Premium Income rose 9.5% to RM447.9 million from RM409.0 million, with all major insurance classes registering growth during the quarter.
For the nine-month period ended 30 September 2023 (9M2023), the Group’s Revenue increased 13.5% to RM1,424.1 million from RM1,254.4 million posted in the corresponding period in FY2022 (9M2022). The increase in Revenue was mainly due to higher contributions from General Insurance segment. The LPI Group’s PBT for the first nine months of FY2023 grew 12.6% to RM291.7 million from RM259 million year-over-year. This is attributable to higher investment income which increased 38.0% to RM99.2 million from RM71.9 million in 9M2022, as well as a reported net fair value gain of RM15.2 million in its investments as compared to a RM10.8 million net fair value losses recorded in 9M2022.
Meanwhile, Net Profit Attributable to Shareholders rose 19.0% to RM235.1 million as compared to the RM197.6 million achieved in the previous corresponding period. LPI’s Net Return on Equity for 9M2023 improved to 10.9% from 9.2% while
Earnings Per Share increased to 59.03 sen from 49.60 sen.
