KUALA LUMPUR (Aug 21): LPI Capital Bhd (KL:LPI) said its second-quarter net profit rose 23% to RM78 million from RM63.4 million a year earlier, driven by higher earnings from the general insurance segment.

Earnings per share for the quarter ended June 30, 2024 (2QFY2024) improved to 19.58 sen from 15.92 sen previously, the insurer said in a stock exchange filing on Wednesday.

Quarterly revenue inched up 1.5% year-on-year to RM469.4 million from RM462.36 million, as contributions from the general insurance segment rose to RM469.0 million from RM462.1 million on higher insurance revenue, coupled with investment income.

The group declared a first interim dividend of 30 sen per share, up from 26 sen per share a year earlier, payable on Sept 13. The payout of RM119.5 million represents 66.6% of the group’s net profit attributable to shareholders.

For the first half ended June 30, 2024 (1HFY2024), net profit came in 30.7% higher at RM179.29 million, compared with RM137.23 million for the same period of the previous year. Revenue rose 1.5% to RM939.16 million from RM925.66 million previously, on higher revenue from the investment holding segment, which was attributed to higher dividend income.

On its prospects, LPI said the government's boosted spending in the semiconductor industry, building manufacturing capabilities and expanding public infrastructure are expected to increase demand for insurance services in the coming quarters.

"The LPI group will leverage its established agency network, insurance brokering partners and extensive global partnerships to tap into the expanding insurance business," it said.

On top of that, LPI said the group will continue to promote wider adoption of digital solutions to enhance efficiency and improve customer experience.

Shares in LPI closed 46 sen or 3.57% higher at RM13.34 on Wednesday, valuing the group at RM5.31 billion.