LPI Capital posts net profit of RM114.83mil in 3Q amid heightened underwriting challenges

KUALA LMPUR: LPI Capital Bhd said it will closely monitor its medical portfolio to review its products and risks as it aims to improve the claims experience of the portfolio.

In a review of its quarterly performance, the insurance firm said medical and health claim trends have deteriorated amid rising medical inflation and increased utilisation.

"The group will tighten its underwriting and adopt new risk and pricing modellings where loss trends show deterioration," it said in a statement.

The group commented that there were also heightened underwriting challenges in the motor and catastrophe-related sectors. It noted the increased frequency and severity of weather events, especially flooding, will continue to challenge its underwriting results.

LPI posted a lower net profit of RM114.83mil in the third quarter ended Sept 30, 2025, compared to RM123.94mil in the previous corresponding quarter, mainly due to a lower insurance service result.

This was despite an increase in quarterly revenue to RM549.31mil from RM499.83mil in 3QFY24. The 9.9% increase in revenue year-on-year was a result of higher contributions from the general insurance segment.

Quarterly earnings per share slipped to 28.82 sen from 31.11 sen previously.

The group's weaker bottomline extended to the nine-month period, where it recorded a net profit of RM295.98mil as compared to RM303.23mil in the 2024 period.

Revenue during the period was RM1.57bil against RM1.44bil in 9MFY24.