LPI Capital Q3 earnings up 26.7% to RM60.35m (Update)

by **Cals** Wed 09 Oct 2013, 01:43

Published: Tuesday October 8, 2013 MYT 1:32:00 PM
Updated: Tuesday October 8, 2013 MYT 1:54:14 PM
LPI Capital Q3 earnings up 26.7% to RM60.35m (Update)
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Tan Sri Teh Hong Piow, who is the founder and chairman of LPI Capital Bhd, says the group's balance sheet is strong and healthy with total assets standing at RM3.11bil, 16% higher than the previous corresponding period.
KUALA LUMPUR: LPI Capital Bhd’s earnings rose 26.7% to RM60.35mil in the third quarter ended Sept 30, 2013 from RM47.63mil a year ago on higher underwriting profit by its unit Lonpac Insurance Bhd (Lonpac).

It said on Tuesday the revenue rose 10.6% to RM283.51mil from RM256.31mil. Earnings per share were 27.4 sen compared with 21.62 sen.

Commenting on the group's performance for the quarter, Tan Sri Teh Hong Piow, who is the founder and chairman said:

"The third quarter has been challenging with continuing uncertainties in the global economies and the stiff competition in the insurance market.

“Nonetheless, our discipline and prudency on risk selection and claims management have enabled us to reduce the claims incurred ratio from 46% to 44% and the combined ratio from 73% to 69% for the third quarter in 2013 as compared to the previous corresponding quarter. All classes of insurance continued to register underwriting surplus."

For the nine-months period, its earnings rose 24.6% to RM149.05mil from RM119.54mil in the previous corresponding period.

He said the underwriting profit of Lonpac for the same period improved remarkably by 27.8% from RM100.7mil to RM128.7mil.

Its revenue rose at a slower pace of 7.4% to RM824.37mil from RM767.39mil a year ago. LonPac’s gross premium income of Lonpac improved by 5.3% to RM862.4mil.

"The group's balance sheet is strong and healthy with total assets standing at RM3.11bil, 16% higher than the previous corresponding period. Likewise, the investment portfolio remains stable with improved investment income for the nine months period,” he said.