by BERNAMA / pic by TMR GRAPHIC
LPI Capital Bhd’s net profit eased slightly to RM86.18 million in the third quarter (Q3) ended Sept 30, 2020, from RM87.82 million a year earlier, partly due to a 43.6 per cent drop in investment income.
The general insurance firm said while fair value gains on investment recorded a year-on-year (y-o-y) increase of RM4.6 million, total dividend and interest incomes declined by RM14.5 million.
“The investment holding segment recorded a lower profit before tax of RM14.2 million compared to RM27.5 million in the corresponding period in 2019,” it said in a filing with Bursa Malaysia today.
Revenue also declined to RM395.76 million compared to RM423.84 million a year earlier, affected by a 96 per cent fall in the investment holding segment’s revenue to RM600,000.
While the general insurance segment posted 3.3 per cent lower revenue of RM395.2 million, its pre-tax profit rose by 15.3 per cent y-o-y to RM113.1 million from RM98.1 million in the third quarter of 2019.
Underwriting profit for Q3 2020 increased by 14.0 per cent to RM86.3 million, mainly due to lower claims incurred and management expenses compared with the corresponding quarter in 2019, LPI said.
For the nine-month period, the group recorded a net profit of RM241.50 million from RM235.76 million in the same period last year while revenue was flat at RM1.20 billion.
In a press statement, group chairman Tan Sri Dr Teh Hong Piow said widespread economic impacts continued months after the COVID-19 virus was first reported and this had been felt across multiple sectors of the economy.
“However, I am pleased to advise that the LPI group, despite the challenges, has managed to report a creditable performance for Q3 2020,” he said.
Teh said the various additional economic stimulus announced recently by the government was expected to further support the efforts to revive the economy.
“With the right standard operating procedures in place and improved compliance by the public, we should be able to manage the COVID-19 situation despite the recent spike in cases while, at the same time, the economy can continue functioning.
“For the group, we need to continue assessing the range of possible future scenarios and develop corresponding strategic actions to address these possible scenarios in order to thrive in the new reality,” he added.