KUALA LUMPUR (Oct 29): General insurer LPI Capital Bhd (KL:LPI) said on Tuesday its net profit rose 27% in the third quarter ended Sept 30, 2024 (3QFY2024) from a year earlier, thanks to higher investment returns and lower reinsurance expenses.
Net profit for 3QFY2024 stood at RM123.94 million, according to an exchange filing. Revenue for the quarter, however, was barely higher year-on-year at RM499.83 million, amid a drag from currency translation of its Singapore operations following the ringgit's appreciation.
The fourth quarter is expected to remain “challenging”, amid intensifying geopolitical tensions, LPI Capital said. “Distribution channels will be further enhanced to tap into the insurance needs of the increased domestic and foreign direct investments to drive sustainable business growth.”
For the quarter under review, the general insurance segment recorded a marginally lower revenue of RM477.9 million, compared with RM478.9 million reported in the previous corresponding quarter, mainly due to lower insurance revenue caused by currency translation of its Singapore operations arising from the strengthening of the ringgit.
For the nine months ended Sept 30, 2024 (9MFY2024), the insurer's earnings rose 29% to RM303.23 million, from RM235.15 a year earlier.
Revenue was higher at RM1.44 billion, from RM1.42 billion in 9MFY2023, mainly driven by the investment holding segment, attributable to higher dividend income.
Lonpac Insurance's gross written premiums up nearly 4%
Lonpac Insurance Bhd, the group’s wholly owned insurance subsidiary, posted a profit before tax of RM130.2 million in 3QFY2024, representing a 28.3% year-on-year increase from RM101.5 million.
The increase in profitability was contributed mainly by better insurance service results as compared to 3QFY2023, growing 25.9% to RM111.4 million from RM88.5 million, due primarily to a lower net claims incurred ratio of 35.8% versus 39.4%.
Fire and miscellaneous classes of business also contributed to the better insurance service results.
For the quarter under review, gross written premiums rose 3.9% to RM465.2 million, from RM447.9 million in 3QFY2023.
At the time of writing on Tuesday, LPI Capital shares were 14 sen or 1% higher at RM13.54, valuing the group at RM5.39 billion.