LPI Capital Bhd’s net profit fell 8.1% to RM166.4 million for the six months ended June 30, 2026 (1H26), from RM181.1 million a year earlier, weighed down by weaker earnings from its general insurance business and fair-value losses on investments.
The group recorded RM7.9 million in net fair-value losses on investments during the period, reversing RM15.2 million in gains recorded in 1H25. Its investment holding segment, however, benefitted from stronger tax-exempt dividend and interest income.
Despite the weaker bottom line, operating revenue rose 6.9% to RM1.09 billion from RM1.02 billion, driven mainly by higher contributions from the general insurance segment. Earnings per share eased to 41.77 sen from 45.47 sen, while net return on equity slipped to 6.7% from 7.7%.
For the second quarter alone, net profit attributable to shareholders dropped 19.6% to RM66.9 million from RM83.2 million, even as operating revenue increased 7.4% to RM545.2 million.
LPI’s wholly-owned insurance unit, Lonpac Insurance Bhd, saw gross written premiums rise 4.1% to RM1.07 billion in 1H26, while its insurance service result improved 3.1% to RM171.1 million from RM165.9 million.
The fire insurance business was a key bright spot, with its insurance service result rising sharply to RM140.4 million from RM96.1 million, supported by better claims experience.
Motor insurance remained under pressure, swinging to an insurance service loss of RM5.9 million from a RM28 million profit a year earlier. Lonpac’s net claims incurred ratio also increased to 45.6% from 44.8%.
LPI declared a first interim dividend of 25 sen per share, amounting to RM99.6 million, alongside a special dividend of 65 sen per share following the completion of its RM1.05 billion disposal of 220.3 million Public Bank Bhd shares in May.
Looking ahead, the group expects Malaysia’s general insurance industry to maintain healthy growth in 2026, although geopolitical uncertainty, supply-chain disruptions and rising claims costs could continue to weigh on underwriting performance.
