LPI Capital Q1 net profit up 8%

PETALING JAYA: LPI Capital Bhd saw its net profit in the first quarter ended March 31, 2017 (Q1) grow 8% to RM70.6 million, from RM65.4 million in the previous corresponding quarter, mainly due to higher profit from its general insurance segment.
The insurer's revenue increased 8.4% to RM347.6 million, compared with RM320.6 million in the same period last year, largely due to higher gross earned premium during the quarter.
Correspondingly, the group's earnings per share increased to 21.25 sen from 19.70 sen, while net return on equity stood at 4.1%, up from 4%.
In a statement today, the group's founder and chairman Tan Sri Datuk Seri Dr Teh Hong Piow said its unit Lonpac Insurance Bhd (Lonpac) has remained resilient despite multiple external shocks and adjustments to various challenges faced by the country's economy last year.
In addition, Teh said the agency force remains Lonpac's main distribution channel contributing about 40% of its total premium income.
"Continuous efforts will be made to further strengthen the agency force and to explore the use of new distribution channels for sustainable premium growth," he added.