PETALING JAYA: Insurer LPI Capital Bhd
posted a drop in net profit to RM96.8mil for the third quarter ended Sept 30, 2026 (3Q26) compared to RM114.8mil in the same quarter of the previous year as a spike in bond yields weigh on the profitability of the company’s general insurance business.
The company said in a stock exchange filing that the spike in bond yields had caused fair value losses to its investments whereas the insurance service results remained resilient in 3Q26, resulting in a decline in net profit.
“Likewise, net return on equity registered at 4.4% from 4.9% in 3Q25 while earnings per share was reported at 24.30 sen as compared to 28.82 sen in 3Q25.”
The company reported 3Q26 revenue increased RM555.5mil from RM549.3mil in 3Q25 due to higher contribution from the general insurance business while the investment holding business recorded lower revenue mainly due to the lower tax-exempt dividend income received following the disposal of Public Bank Bhd shares on May 21, 2026.
Net profit for the first nine months of 2026 (9M26) stood at RM263.2mil compared to nearly RM296mil in the corresponding period of the previous year.
Revenue for the period increased 4.9% to RM1.65bil compared to RM1.57bil in the previous corresponding period.
The increase in revenue was mainly driven by the general insurance segment while the investment holding business recorded lower revenue.
The company noted that profit before tax (PBT) for 3Q26 registered a 14.5% decline due to lower profits from the general insurance business attributable to net fair value losses of RM12.1mil in its investments as opposed to RM2.3mil net fair value gains recorded in the previous corresponding quarter due to a spike in bond yields.
The investment holding business reported a 53.4% lower PBT mainly due to the lower tax-exempt dividend income received from its equity investments. PBT for 9M26 was 10.5% lower at RM327.2mil.
The company’s wholly-owned subsidiary Lonpac Insurance Bhd posted 7.6% lower PBT at RM107.7mil in 3Q26 mainly attributable to lower investment return whereas its insurance service results was 5.2% higher at RM103.9mil compared to the same quarter of last year.
