KUALA LUMPUR (Feb 14): LPI Capital Bhd (KL:LPI) announced on Friday that its net profit fell 6.24% in the fourth quarter ended Dec 31, 2024 (4QFY2024), due to fair value loss in investments despite strong underwriting performance.

Net profit for 4QFY2024 stood at RM73.86 million, down from RM78.58 million a year earlier, according to the general insurer's exchange filing. Quarterly earnings per share fell to 18.54 sen from 19.72 sen.

The group declared a second interim dividend of 50 sen per share, payable on March 25, bringing its full-year dividend to 80 sen per share, up from 66 sen per share last year.

LPI Capital shares rose 20 sen or 1.47% to RM13.80 following the announcement, valuing the group at RM5.51 billion.

Quarterly revenue edged up 1.3% to RM487.6 million from RM481.4 million. Its general insurance segment — the largest contributor — recorded a 1.2% year-on-year (y-o-y) increase to RM487.1 million from RM480.9 million, driven by higher insurance revenue.

For the full year ended Dec 31, 2024 (FY2024), the insurer’s earnings grew 20.2% to RM377.1 million from RM313.7 million, while revenue inched up 1.11% to RM1.93 billion from RM1.91 billion in FY2023.

On prospects, LPI, which saw Public Bank Bhd (KL:PBBANK) emerge as its largest shareholder following the acquisition of a 44.15% stake in the insurer, said it has greater opportunities to cross-sell insurance products, develop tailored solutions with flexible pricing and innovative protection features, and compete for new business.

The group also plans to automate processes, enhance distribution channels, and expand green insurance solutions for sustainable assets.

Lonpac Insurance Bhd, LPI’s wholly owned insurance subsidiary, posted a profit before tax of RM96.7 million in 4QFY2024, down 7% from RM104 million a year earlier.

The decline was mainly due to net fair value losses on investments, compared to net fair value gains in the previous year.

However, Lonpac’s insurance service results grew 11% y-o-y to RM90.1 million from RM81.2 million, partly due to a slightly lower net claims incurred ratio of 41.5%, compared to 41.7% in 4QFY2023.

Fire and motor insurance also contributed to the improved insurance service results.

For the quarter under review, gross written premiums rose 10.1% to RM431.2 million from RM391.6 million in 4QFY2023.