PETALING JAYA: LPI Capital Bhd saw its net profit for its fourth quarter ended Dec 31, 2016 slipping 20% to RM81.45mil, mainly due to the one-off significant gain of RM36.9mil the company made on the disposal of investment in quoted equities during the same period a year ago.
The insurer said in an announcement to Bursa Malaysia that revenue rose in the quarter under review to RM355.55mil from RM338.62mil mainly from contributions from the general insurance business that saw a 4.5% increase to RM352.9mil.
For the full year, net profit surged 36.20% to RM437.22mil, while revenue increased 7.81% to RM1.38bil.
The company said that the prospects for this year remain challenging and sees more competition with the detariffication of motor insurance. It added that this could have a detrimental impact on the company’s underwriting performance.
Meanwhile, LPI founder and chairman Tan Sri Dr Teh Hong Piow, also the company’s controlling shareholder, said in a statement that insurance subsidiary Lonpac Insurance Bhd performed well for the year under review reflected in the 17.4% growth in profit before tax to RM336.7mil.
In a separate announcement, the company declared a second interim dividend of 55 sen per ordinary share, to be paid on March 2, 2017.
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