LPI Capital posts better Q4 results

PETALING JAYA: LPI Capital Bhd’s net profit in the fourth quarter ended Dec 31, 2017 (Q4’FY17) increased 1.9% to RM83 million, from RM81.45 million in the previous corresponding quarter, mainly contributed by profit from the general insurance segment, which rose 4.3% to RM110.4 million.Revenue was up 2.2% to RM363.5 million compared with RM355.6 million in the same period in FY16.
Underwriting profit for the quarter grew 2.3% to RM93.2 million from RM91.1 million previously on the back of 8% growth in net earned premium income.
LPI’s full-year net profit dropped 28.2% to RM313.8 million against RM437.2 million in FY16, mainly due to the absence of non-recurring gains. Revenue soared 6.7% to RM1.47 billion from RM1.38 billion previously.
In view of the strong performance of the group, the group has declared a second interim dividend of 45 sen per share, which amounts to RM149.4 million.
Together with the first interim dividend of 27 sen per share amounting to RM89.6 million, which was paid in August 2017, the total dividend for FY17 of RM239 million represents 76.2% of the group’s net profit attributable to shareholders.
On prospects, the group’s founder and chairman Tan Sri Teh Hong Piow said the liberalisation (framework) process will continue to pose new challenges to the insurance industry.
“We are nevertheless confident that the group will be able to ride the challenges and take advantage of the opportunities presented to report another favourable performance for 2018,” he said in a statement.
Separately, LPI told Bursa Malaysia that it has proposed to undertake a bonus issue on the basis of one bonus share for every five existing shares held by shareholders.
The bonus issue, which entails an issuance of up to 66.4 million new shares, will be implemented by way of capitalisation of RM6.26 million from the share premium account and the remaining RM60.14 million from the retained earnings account.
LPI’s share capital will increase from RM338.24 million comprising 331.98 million shares to RM398.38 million comprising 398.38 million shares.
The exercise aims to reward the group’s existing shareholders for their loyalty and continuous support and increase the group’s share capital to a level which will better reflect its current scale of operations and assets employed. The bonus issue is expected to be completed in the second quarter of 2018.
LPI shares closed 56 sen or 3% higher at RM19.42 today on some 187,300 shares done.