by BERNAMA / graphic by TMR

LPI Capital Bhd’s net profit for the financial year ended Dec 31, 2021 (FY21) rose to RM344.68 million from RM336.73 million chalked up in the previous year.

Revenue for the year under review improved 5.9% to RM1.72 billion from RM1.62 billion in FY20.

“The growth in revenue was due to higher gross earned premium which contributed 93.8% to the total operating revenue in FY21,” the investment holding company said in a filing with Bursa Malaysia yesterday.

As for the fourth quarter ended Dec 31, 2021 (4Q21), LPI recorded a net profit of RM73.07 million versus RM95.23 million in 4Q20, while revenue rose to RM429.04 million from RM422.38 million previously.

Group chairman Tan Sri Dr Teh Hong Piow said the group’s performance in 4Q21 was affected by the normalisation of claims ratios with the easing of the lockdowns and the reopening of the economy.

“The year-end flood disaster and lacklustre performance of the fixed income unit trusts also contributed to the lower profit.

“Generally, all major classes of insurance reported an increase in their claims incurred ratio as economic activities resumed and movement restrictions eased in the last quarter of the year.

“The floods in December also contributed partly to the increase in claims incurred ratio, with our wholly owned insurance subsidiary, Lonpac Insurance Bhd, receiving more than 1,300 flood claims intimations as at Dec 31, 2021,” he added.