LPI Capital records higher net profit of RM99.54mil in 1Q

KUALA LUMPUR: LPI Capital Bhd is aiming to increase its operational efectiveness through the use of artifical intelligence (AI), which it said will improve customers' experience and support sustainable business growth.

The insurance firm added that it will continue its efforts to improve its market share by further expanding its distribution channels.

This is despite the softer demand for insurance arising from the broader economic slowdown.

"The agency network will be further extended in areas where LPI Group is not well represented, and the quality of agency service will be enhanced to better serve a bigger pool of customers," it said in comments accompanying its latest results announcement.

In the first quarter ended March 31, 2026, LPI Capital posted a net profit of RM99.54mil, an increase from RM97.98mil in the year-ago quarter.

It said the improved profitability was primarily owing to higher pre-tax profit from the investment holding segment, which increased 10.8% year-on-year (y-o-y) to RM23.6mil during the quarter.

The group's general insurance segment, however recorded a marginally lower pre-tax profit of RM98.5mil due to a net fair value loss of RM6.1mil in its investments.

Net return on equity came in at 4.2%, down from 4.3% while earnings per share was marginally higher at 24.99 sen as compared to 24.59 sen in 1Q2025. 

Quarterly revenue was RM547.7mil as compared to RM515.1mil in the previous comparative quarter, largely attributed to the general insurance segment, which recorded an RM30.6mil increase in contribution to RM521.5mil.

The investment holding segment recorded higher revenue of RM26.2mil as compared to RM24.2mil in the previous-year quarter, contributed by higher dividend income received.

The group said Lonpac, its wholly-owned insurance subsidiary, posted a lower pre-tax profit of RM97.8mil as compared to RM98.3mil in 1Q2025.

"The marginal decline in the profitability of Lonpac was mainly due to net fair value losses reported in its investments as opposed to net fair value gains in 1Q2025."

Lonpac’s Insurance Service Result, however, registered a 14.2% y-o-y improvement to RM89.9mil from RM78.7mil.