LPI’s 2Q net profit surges 148% on equity disposal gains

by **Cals** Tue 12 Jul 2016, 20:49

LPI’s 2Q net profit surges 148% on equity disposal gains

By Tan Siew Mung / The Edge Financial Daily | July 12, 2016 : 9:58 AM MYT

This article first appeared in The Edge Financial Daily, on July 12, 2016.

KUALA LUMPUR: LPI Capital Bhd achieved sterling results in the second quarter ended June 30, 2016 (2QFY16), as its net profit surged 148% to RM212.62 million, from RM85.74 million a year ago, with its investment holding segment chalking up gains of RM150.4 million on disposal of equity investments.

Its board declared a first interim dividend of 25 sen per share, amounting to RM83 million, which is payable on Aug 3, according to its Bursa filings.

Revenue for 2QFY16 increased 11.33% year-on-year (y-o-y) to RM339.25 million, from RM304.73, largely contributed by revenue from the general insurance segment, which improved 10.9% to RM337.3 million. Profit-wise, it grew 29.1% to RM82.1 million, from RM63.6 million in

2QFY15.

Underwriting profit for the quarter rose by 34.6% y-o-y to RM67.7 million, on the back of a 7.1% improvement in its combined ratio to 66.5%, due to improved performance in all its underwriting components.

For the first half ended June 30, 2016 (1HFY16), the group’s net profit jumped 94.5% to RM278.01 million, from RM142.94 million in 1HFY15, while revenue gained 10.62% to RM659.81 million, from RM596.46 million.

In a statement, its group chairman and founder Tan Sri Teh Hong Piow said LPI’s outstanding first-half performance was partly due to realisation of gains of RM150.4 million from the group’s equity investment in the second quarter.

He also said Lonpac Insurance Bhd, LPI’s wholly-owned insurance subsidiary, had put up a commendable performance.

Teh is confident that LPI will continue to report favourable performance for 2HFY16