LPI Capital Q2 earnings down 19.6pct as general insurance earnings weaken
KUALA LUMPUR: LPI Capital Bhd’s net profit fell 19.6 per cent to RM66.86 million in the second quarter ended June 30, 2026, from RM83.17 million a year earlier, despite revenue rising 7.4 per cent to RM545.22 million from RM507.64 million.
LPI Capital Bhd reported a 19.6% decline in net profit to RM66.86 million in the second quarter of 2026, despite a 7.4% increase in revenue to RM545.22 million. The company's general insurance segment, which contributed significantly to the earnings, saw a 18.6% drop, falling to RM90.7 million from RM111.4 million due to net fair value losses on investments.
For the first half of 2026, LPI Capital's net profit dropped 8.1% to RM166.39 million, while revenue grew 6.9% to RM1.09 billion. The insurer attributed the weaker performance to a higher frequency of accidents in the motor insurance sector, increased court awards for third-party bodily injury claims, and inadequate pricing in certain motor segments.
However, its fire insurance portfolio remained strong, outperforming the industry average with a balanced mix of residential, SME, commercial, and industrial property risks. LPI Capital plans to strengthen distribution channels, develop comprehensive solutions, and enhance claims services to compete effectively and expand its market share.
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