LPI Capital has achieved a pre-tax profit of RM77.5mil for the financial year ended Dec 31, 2004, up 78% from RM43.6mil the year before. Net profit improved by 57% to RM55.5mil from RM35.3mil previously.
For the year under review, revenue rose 10% to RM376.9mil.
Chairman Tan Sri Teh Hong Piow said despite having to operate in a very competitive environment, the company was able to improve its revenue and pre-tax.
“The major factors contributing to LPI Capital's sterling performance were better underwriting results achieved by the general insurance operations and improved investment income,” he said in a statement yesterday.
Lonpac Insurance Bhd, a wholly-owned subsidiary, contributed RM54mil of group profit.
Teh said Lonpac Insurance's underwriting surplus expanded by 33% to RM28.1mil, up from RM21.2mil previously.
LPI Capital's shareholders' funds improved by 22% to RM357.9mil, while its total asset base grew 17% to RM633.4mil.
Its net tangible asset per share stood at RM2.78 while and earnings per share improved by 51% to 44.8 sen.
“The board of directors has proposed a special dividend of 30% and a final dividend of 30%, making a total payout of 60% (less 28% taxation) in view of our excellent performance,” Teh said.
The special dividend was part of the company's endeavour to enhance the efficiency of its capital structure, he added.