KUALA LUMPUR: LPI Capital Bhd registered lower profitability in the third quarter ended Sept 30, 2026, mainly owing to lower profits in the general insurance segment.
Quarterly net profit dropped to RM96.82mil from RM114.83mil in 3Q25, while revenue was slightly higher at RM555.52mil against RM549.31mil. Earnings per share dipped to 24.3 sen from 28.82 sen previously.
The general insurance segment's profits decreased 7.7% to RM107.8mil from RM116.8mil in 3Q25 due to the net fair value loss of RM12.1mil in its investments as opposed to the RM2.3mil net fair value gain recorded in the previous corresponding quarter, due a spike in bond yields.
Lonpac Insurance Bhd Group, the group's insurance arm, recorded a 5% increase in insurance service result to RM103.9mil from RM98.7mil. The improved underwriting performance was owing to a lower net claims incurred ratio of 42.7% as compared to 43.8% in 3Q25.
For the cumulative nine months period to Sept 30, 2026, LPI Capital posted a net profit of RM263.21mil as compared to RM295.98mil in the year-ago period, on the back of revenue of RM1.65bil against RM1.57bil previously.
According to the group's results announcement, it aims to prioritise profitable growth over premium growth.
"The key objective will be sustainable underwriting profitability, rather than just increasing market share.
"The group will strengthen technical pricing and risk segmentation, and review loss ratios, expense ratios and combined ratios by product, customer, channel, geographical region and agent to reinforce underwriting discipline and support profitability," it said.