KUALA LUMPUR: LPI Capital Bhd's net profit rose 26.6 per cent to RM123.94 million in the third quarter ended Sep 30, 2024 (Q3 2024) from RM97.92 million in Q3 2023 supporrted by the general insurance segment.
Revenue rose 0.3 per cent to RM499.83 million from RM498.4 million in the same period last year due to its investment holding segment.
The general insurance segment logged a pre-tax profit of RM130.4 million, up 28 per cent from RM101.9 million in Q3 2023 mainly contributed by a higher insurance service result.
The investment holding segment similarly recorded a higher profit before tax (PBT) of RM20.0 million as compared to RM17.7 million in the same quarter last year mainly contributed by higher tax-exempt dividend income received during the quarter under review.
Lonpac Insurance Bhd (Lonpac), the group's wholly-owned insurance subsidiary, posted a PBT of RM130.2 million in Q3 2024, up 28.3 per cent year-on-year (YoY) from RM101.5 million.
This was contributed mainly by higher Insurance Service Result which grew 25.9 per cent YoY to RM111.4 million from RM88.5 million.
For the cumulative nine-month period, the company's net profit rose to RM303.23 million from RM235.15 million a year ago. Its revenue stood at RM1.44 billiom compared to RM1.42 billion in the same period last year.
Despite the solid economic performance reported by Malaysia, the company said external factors especially the rising geopolitical tensions may overshadow domestic stability and cause heightened uncertainty and volatility.
LPI Group expects a challenging Q4 and will focus on international and local developments that may affect its prospects.
"Lonpac's distribution channels will be further enhanced to tap into the insurance needs of the increased domestic and foreign direct investments to drive sustainable business growth.
"Meanwhile, the LPI Group recognises the need to future-proof its workforce by enhancing skills and boosting employee value propositions to attract and retain talents. Emerging technologies will be further explored to strengthen its operational effectiveness and efficiency in order to adapt to evolving business needs," it said in a statement.
Earlier this month, Public Bank Bhd announced that is acquiring a 44.25 per cent stake in LPI Capital for RM1.72 billion in cash from the family of the late Tan Sri Teh Hong Piow.
Teh was the founder of both Public Bank and LPI.