KUALA LUMPUR: LPI Capital Bhd
, whose bottomline rose a notable 37% in the first quarter of 2024, said it will focus on sustainability efforts within an increasingly competitive market environment.
The insurance group posted a net profit of RM101.29mil in 1QFY24, up from RM73.83mil in the same quarter in 2023, which translates to an earnings per share of 25.43 sen compared to 18.53 sen.
In a statement accompanying the results, LPI said the increase was driven by higher profit from the general insurance segment, mainly due to a higher insurance service result.
The group's revenue was slightly higher at RM469.76mil, as compared to RM463.3mil in 1QFY23, largely attributable to the performance of the investment holding segment, which recorded a higher dividend income.
LPI said its wholly-owned insurance subsidiary Lonpac Insurance Bhd posted an impressive 31.4% year-on-year increase in pre-tax profit to RM81.8mil, contributed by a higher insurance service result.
In its outlook, LPI projected that the Malaysian insurance industry will continue to face greater competition and underwriting margins compression owing to the Phased Liberalisation process.
Hence, it aimed to enhance its sustainability by focusing on strategic sectors that can provide steady and sustainable profits.
"Product diversification and market segmentation are important strategic measures in driving business success.
"To do so, the group will continue to strengthen its distribution channels by forming partnerships and enhancing its collaboration with agents and bancassurance partners to grow the desired portfolios," said the group.
