LPI Capital Bhd’s net profit fell 19.6% year-on-year to RM66.86 million for the second quarter of its 2026 financial year, dragged down by weaker insurance performance and fair-value losses on investments.
Despite the weaker profit, the company announced a first interim dividend of 25 sen per share, amounting to RM99.6 million.
It will also pay a special dividend of 65 sen per share using proceeds from the earlier sale of Public Bank shares, bringing its total dividend for the quarter to 90 sen per share.
The dividends will go ex on August 28, with payment scheduled for September 9.
Revenue grows despite weaker insurance performance
LPI Capital’s revenue rose 7.4% year-on-year to RM545.22 million, mainly driven by its general insurance business.
Its subsidiary, Lonpac Insurance, recorded a 6.9% increase in gross premiums to RM490.6 million.
However, insurance service results fell 6.9% to RM81.2 million.
Motor insurance remains a drag
The weaker underwriting performance was mainly attributed to its motor insurance business.
Lonpac’s net claims ratio increased from 43.9% to 46.6%, pushing its combined ratio higher from 75.2% to 78.9%.
On the positive side, its management expense ratio improved from 21.5% to 21.2%, while its net commission ratio fell from 8.2% to 7.7%.
For the first six months of FY2026, LPI Capital’s net profit declined 8% year-on-year to RM166.39 million, while revenue increased 6.8% to RM1.093 billion.
LPI remains cautious on insurance outlook
Looking ahead, LPI Capital expects Malaysia’s general insurance sector to continue recording healthy growth this year.
However, supply chain disruptions and resulting inflationary pressures could push up claims costs and put further pressure on underwriting performance.
The company said it will continue to adopt prudent underwriting and strengthen claims management to improve its motor insurance business.
Meanwhile, its fire insurance business continues to outperform the industry average, and LPI plans to expand its market share in the segment.
Follow Wah Piang for more.
