LPI Capital posts lower FY25 earnings

KUALA LUMPUR: LPI Capital Bhd’s net profit fell to RM367.78mil for the financial year ended Dec 31, 2025 (FY25) from RM377.09mil in FY24.

Revenue, however, rose 9.6% to RM2.11bil from RM1.92bil previously, driven mainly by the general insurance segment.

In a filing with Bursa Malaysia, the group said of the RM2.11bil in revenue, RM2.06bil was contributed by the general insurance segment, while RM47.9mil came from the investment holding segment.

For the fourth quarter ended Dec 31, 2025, net profit slipped to RM71.81mil from RM73.86mil a year earlier, while revenue increased to RM540.18mil from RM487.64mil.

LPI said it had relatively low spending on plant and equipment and intangible assets, as its core business is underwriting of general insurance.

“The group’s investing activities for the current financial year amounted to RM2.9mil, mainly relating to the purchase of computer and computer software.

“The group’s balance sheet did not carry any debts other than insurance contract liabilities which increased by RM130mil to RM2.39bil as at Dec 31, 2025.”

On its prospects, LPI said 2026 would depend on its ability to further expand its distribution channels, uphold prudent underwriting practices, maintain effective risk management and respond swiftly to the changing insurance environment.

“The group aims to build its market share by intensifying its bancassurance cross-selling with Public Bank Group.

“A joint working committee has been established with Public Bank Group which will enable a more coordinated branch-level marketing approach.

“The group will continue to expand its agency force and tap into foreign direct investment flows into Malaysia through its global partners’ connection.”

Additionally, LPI said growth is still expected for Malaysia’s economy in 2026, albeit at a slower pace despite persistent global uncertainties.

“General insurance written premium in Malaysia should stay healthy, supported by continued expansion of gross domestic product.

“On the other hand, Malaysia continues to face increasing climate-related exposures, especially severe flooding events.”

As a major property underwriter, the group said it faces heightened underwriting volatility that demands a more robust catastrophe modelling and risk assessment.

“To drive future growth and ensure sustainability, the group will continue to increase its adoption of technology, including artificial intelligence, to refine its risk pricing models, strengthen its catastrophic risk modelling capabilities, and at the same time, deliver superior customer experiences,” it said.

LPI has declared a second interim single-tier dividend of 50 sen per share for FY25, payable on March 19, 2026. — Agencies