Public Bank owned insurance unit, LPI Group reported an impressive performance for the 4th Quarter of FY2023 registering robust growth of 26.5% in its Operating Revenue to RM481.4 million from RM380.5 million in the previous corresponding quarter, contributed mainly by the performance of its general insurance segment. For the quarter under review, the Profit Before Tax (PBT) of the LPI Group similarly posted an improvement of 24.8% to RM103.2 million from RM82.7 million in 4Q2022, attributable to higher investment return and improved Insurance Service Result.
As a result, Net Profit Attributable to Shareholders rose 44.0% to RM78.6 million from RM54.6 million year-on-year, partly due to the absence of the one-off Prosperity Tax imposed in FY2022. The Group’s Net Return on Equity was reported at 3.4% and Earnings Per Share at 19.72 sen for 4Q2023, against 2.5% and 13.71 sen, respectively, in the corresponding quarter in FY2022.
For the financial year ended 31 December 2023 (FY2023), LPI Group’s Operating Revenue increased 16.5% to RM1,905.4 million from RM1,634.9 million in FY2022. The increase in revenue was mainly contributed by higher insurance revenue, as well as higher interest and dividend income. Insurance revenue accounted for 93.5% of total Operating Revenue in FY2023. The LPI Group’s PBT for FY2023 grew 15.6% to RM394.9 million from RM341.7 million year-on-year. The increase in PBT was mainly due to higher investment return, which increased by 62.5% or RM57.4 million, to RM149.3 million from RM91.9 million in FY2022.
The increase was attributable to higher investment income and net fair value gains. The Insurance Service Result for FY2023 was also 2.7% higher year-on-year. Meanwhile, Net Profit Attributable to Shareholders rose 24.4% to RM313.7 million compared to the RM252.2 million achieved in FY2022.
