PETALING JAYA: LPI Capital Bhd says since the implementation of the phased liberalisation of Malaysia’s general insurance industry, there has been greater price competition which is likely to exert pressure on underwriting margins.

       In the fourth quarter ended Dec 31, 2023 (4Q23), the insurer posted a higher net profit of RM78.58mil compared with RM54.61mil achieved a year ago.

       The group’s net return on equity was reported at 3.4% and earnings per share at 19.72 sen for 4Q23, against 2.5% and 13.71 sen, respectively, in the corresponding quarter in financial year 2022 (FY22).

       Revenue for the period rose to RM481.3mil against RM380.5mil previously.

       For the full year, LPI posted a higher net profit and revenue of RM313.7mil and RM1.9bil, respectively.

       LPI said the increase in revenue was mainly contributed by higher insurance revenue, as well as higher interest and dividend income.

       Insurance revenue accounted for 93.5% of total operating revenue in FY23.

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       For FY23, Lonpac’s gross premium income increased 6.2% to RM1.7bil from RM1.63bil in FY22.

       All major insurance classes posted commendable growth.

       With the improved performance reported by the group in FY23 as compared to FY22, the board of directors has declared a second interim dividend of 40 sen per share.

       Together with the first interim dividend of 26 sen amounting to RM103.5mil which was paid in September 2023, the total dividend payment for FY23 comes up to RM262.9mil.

       This represents 83.8% of the group’s net profit attributable to shareholders.