PETALING JAYA: LPI Capital Bhd
is expecting the Malaysian general insurance industry to register moderate premium growth rate in tandem with the economy in 2025 but with heightened underwriting challenges, especially in motor, medical and catastrophe-related sectors.
Increased frequency and severity of weather events, especially flooding in Malaysia will continue to challenge underwriting results, with the group saying it will tighten its underwriting and adopt new risk and pricing modeling where loss trends show deterioration.
Releasing its results for the third quarter ended September (3Q25) yesterday, LPI Capital saw net profit edge lower by 7.3% year-on-year (y-o-y) to RM114.8mil, despite revenue actually growing 9.9% to RM549.3mil.
For the nine months ended Sept 30 (9M25), the trend was similar with net profit declining by 2.4% y-o-y to RM296mil, as turnover rose 9.2% to RM1.57bil. LPI Capital credited the 3Q25 and 9M25 revenue to higher insurance turnover, but smaller “insurance service result” was attributed to be the main cause of the lower profitability.
Compared to the preceding three months ended June however, net profit escalated by 38.1% from RM83.2mil, as revenue also increased 8.2% from RM507.6mil, with the group pointing to higher investment income received for the enlarged profits.
