LPI Capital Records RM84.72 Million In Pre-Tax Profit

July 08, 2010 20:59 PM

LPI Capital Records RM84.72 Million In Pre-Tax Profit

KUALA LUMPUR, July 8 (Bernama) -- General insurer, LPI Capital Bhd, chalked up a 17.3 per cent increase in pre-tax profit to RM84.727 million for the first half-year ended June 30, 2010, from RM72.231 million registered in the same period last year due to higher underwriting profit.

The group's revenue rose 12.2 per cent to RM423.510 million, during the period under review, from RM377.253 million recorded in the corresponding period on the back of increased premium income of 14.2 per cent, said Chairman Tan Sri Dr Teh Hong Piow in a statement Thursday.

He said LPI's earning per share for the six months period jumped to 47 sen from 42 sen previously.

Meanwhile, LPI's wholly-owned subsidiary, Lonpac Insurance Bhd, contributed RM63.7 million to the group's profit in the first-half of the year.

For the second-quarter ended June 30, 2010, the group's pre-tax profit fell 17.7 per cent to RM35.896 million, from RM29.994 million chalked up in the corresponding quarter, due to higher investment income received in the preceding quarter.

"Barring unforeseen circumstances, the group is confident of recording a satisfactory performance in the second-half of 2010," Teh said.

In consideration of the group's strong and commendable performance over the years, Teh said the board was proposing a one-for-ten rights issue of RM7.00 per share and a one-for-two bonus issue.

The proposals were, however, subject to the approval of relevant authorities.

The company also declared an interim single tier dividend of 10 sen per ordinary share.

LPI's total asset base rose 26 per cent to RM1.9 billion as at June 30, 2010.

"The group continued to create and enhance shareholder value through the efficient utilisation of its capital and increasing its return on equity while maintaining excellent corporate governance," Teh added.

-- BERNAMA

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