KUALA LUMPUR: Insurer LPI Capital Bhd (LPI Capital) has announced a higher net profit of RM77.16 million in the first quarter ended March 31, 2019 despite a challenging environment.
LPI group founder and chairman Tan Sri Dr Teh Hong Piow said it had improved its performance during the quarter.
Its revenue for the period increased 3.1 per cent from RM381.0 million in the corresponding quarter of 2018 to RM392.7 million while pre-tax profit grew 4.1 per cent to RM95.4 million from RM91.6 million previously.
Net profit attributable to shareholders came in higher at RM77.2 million, having grown by 6.5 per cent from RM72.5 million, LPI said in a statement today.
“LPI’s net return on equity for the quarter increased to 3.9 per cent from 3.7 per cent previously while earnings per share improved by 6.4 per cent to 19.37 sen from 18.20 sen,” it added.
Teh said its fully-owned Lonpac Insurance Bhd (Lonpac) reported a marginal improvement in its performance for the first quarter of 2019.
Its pre-tax profit increased by 3.5 per cent to RM79.1 million from RM76.4 million in the previous corresponding period.
Its gross written premium for the quarter, however, was 4.6 per cent lower at RM460.9 million compared to RM483.2 million written previously, due partly to the absence of government infrastructure projects and compressed premium pricing.
“Lonpac’s net earned premium income, on the other hand, registered a stronger growth of 8.9 per cent to RM235.6 million from RM216.4 million written in the previous corresponding quarter,” he added.
The higher net earned premium was the result of a lower reinsurance ratio of 39.0 per cent for the quarter as compared to 42.5 per cent reported previously.
“With a higher combined ratio but an improved net earned premium written, Lonpac was able to register an underwriting profit of RM59.6 million,” Teh said.