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KUALA LUMPUR: LPI Capital Bhd insurance company
The third-quarter corporate earnings season began on Thursday, reporting a net profit of RM86.17k, a fall of RM87.82k a year, pointed to the Covid-19 pandemic.
Its revenue fell 6.6% to RM395.75 million from RM 423.84 million a year ago. Earnings per share were 21.63 sen compared to 22.04 sen.
In the nine-month period, its earnings increased 2.4% to RM241.49 thousand from RM235.75 thousand in the corresponding prior period. Its revenue fell 0.3% to RM1.19bil from RM1.20bil.
Commenting on the Q3 performance, LPI Group President Tan Sri Teh Hong Piow said: “The widespread economic shocks continued months after the Covid-19 virus was first reported and this has been felt across multiple sectors. of our economy. “
However, LPI’s unit Lonpac Insurance Bhd posted an impressive Q3 result and pre-tax earnings improved 15.6% to RM112.6k from RM97.4k a year ago. Its technical profit increased by 14% to RM 86.3 million from RM 75.7 million.
Teh said Lonpac’s strong technical results for Q3 were due to a lower incurred claims ratio of 39.5% compared to 43.6% a year ago.
“With a management expense ratio of 18.5% of net earned premium and a commission ratio of 8.0%, Lonpac reported an impressive combined ratio of 66.0%, an improvement from the 70.8% previously reported .
“Despite the bad economic conditions that affected insurance claims, Lonpac managed to maintain its gross premium income for 3Q at RM380.6 thousand. Net earned premium income decreased 1.6% to RM 254.2 million from RM 258.3 million previously due to higher technical reserves, ”he said.
At the group level, LPI’s earnings before tax increased 0.6% to RM112.1k from RM111.4k a year ago. LPI’s investment income for Q3 was affected in part by lower dividend and interest income from its investments.
While its fair value earnings on the investment increased by RM4.6k year-on-year, its total reported interest and dividend income fell by RM14.5k.
Regarding the nine-month period ended September 30, Teh said that LPI Group reported a 3.6% improvement in its pre-tax earnings of RM310.3k from RM299.4k in the corresponding prior period.
“The various additional economic stimuli recently announced by the government are expected to further support the government’s efforts to revive the economy.
“With proper standard operating procedures (SOPs) and better compliance by the public, we should be able to manage the Covid-19 situation despite the recent surge in cases, and at the same time, the economy can continue to function,” said Teh. . He said.
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