KUALA LUMPUR (Aug 13): LPI Capital Bhd (KL:LPI) has declared a 65 sen special dividend funded by the proceeds from the sale of its 1.13% stake in Public Bank Bhd (KL:PBBANK), alongside a 25 sen interim dividend for the quarter ended June 30, 2026. In the previous corresponding quarter, the insurer paid a total dividend of 30 sen per share.
The entitlement date for the dividend will be determined based on the record of depositors as at Sept 1, 2026.
The insurer completed the disposal of 220.3 million Public Bank shares for RM1.05 billion in May, with a commitment to distributing part of the proceeds as special dividends to shareholders within 18 months of the disposal.
The special dividend amounts to a total payout of RM258.96 million. BIMB Securities had estimated that LPI would return about RM737 million to shareholders as special dividends over the 18-month period.
The announcement came as LPI’s net profit fell 19.6% year-on-year to RM66.86 million for the second quarter ended June 30, 2026 (2QFY2026), from RM83.17 million a year earlier, due mainly to lower profit from its general insurance segment.
Quarterly revenue, however, rose 7.4% to RM545.22 million from RM507.64 million.
Profit from the general insurance segment fell 18.6% to RM90.7 million, mainly due to a net fair value loss on investments of RM1.8 million, compared with a gain of RM10.5 million a year earlier, as well as a decline in the insurance service results.
Its wholly owned insurance arm, Lonpac Insurance Bhd, saw gross written premiums rise 6.9% to RM490.6 million. However, its insurance service result fell 6.9% to RM81.2 million, mainly due to weaker motor underwriting performance.
Looking ahead, LPI expects Malaysia’s general insurance industry to remain healthy in 2026, although higher claims costs could continue to pressure underwriting margins. Motor insurance remains a key challenge due to more frequent accidents, higher court awards and inadequate pricing in some segments.
For the six-month period, LPI’s net profit fell 8.1% year-on-year to RM166.4 million, while revenue rose 6.9% to RM1.09 billion.
LPI’s shares were up 0.53% to RM15.08 at Thursday's noon break, valuing the company at RM6 billion. Year to date, the stock is up 0.94%.