PETALING JAYA: LPI Capital Bhd’s net profit for the fourth quarter (Q4) ended Dec 31, 2018 grew marginally by 1.2% to RM84 million from RM83 million a year ago partly due to the increase in claim costs, especially in medical and motor insurance classes.
LPI’s revenue increased 7% to RM389.03 million from RM363.49 million in the previous corresponding quarter, mainly contributed by higher premium written by its wholly owned subsidiary Lonpac Insurance Bhd.
The board has declared a second interim dividend of 42 sen per share amounting to RM167.32 million. Together with the first interim dividend of 26 sen per share amounting to RM103.58 million paid in August 2018, the proposed total dividend payout for FY18 is RM270.9 million, representing 86.3% of the group’s net profit and a 13.3% increase from the total payout in FY17.
LPI told Bursa Malaysia that in Q4, its gross premium income was up 8% to RM304.3 million from RM281.8 million previously.
“Likewise, net earned premium income for the period under review registered a strong growth of 11.9% from RM227.1 million to RM254.1 million.”
The group’s full-year net profit was flat at RM314.05 million compared with RM313.79 million a year ago, while revenue rose 2.9% to RM1.51 billion from RM1.47 billion in the previous corresponding period.
Lonpac said the group improved its market position despite the highly competitive market conditions and slower demand for insurance last year, with gross premium income for the year increased 3.4% to RM1.47 billion from RM1.42 billion written in the previous year.
Fire insurance remains the core portfolio of business contributing 42.4% of its total written premium.
LPI founder and chairman Tan Sri Dr Teh Hong Piow (pix) said Lonpac’s strategy of focusing on product development, enhancing distribution channels and collaborating with key partners will help to continue growing its market share in the light of the challenging economic environment and further liberalisation.
“The group will execute its business plans, which prioritise risk management, organic growth and customer-centric focus,“ he said in a statement.
