皇冠体育寻求亚洲战略合作伙伴,皇冠代理招募中,皇冠平台开放会员注册、充值、提现、电脑版下载、APP下载。

首页社会正文

ug环球360:Higher claims among challenges for industry

admin2022-10-232

ug环球360www.ugbet.us)开放环球UG代理登录网址、会员登录网址、环球UG会员注册、环球UG代理开户申请、环球UG电脑客户端、环球UG手机版下载等业务。

,LPI chairman Tan Sri Teh Hong Piow

PETALING JAYA: Insurer LPI Capital Bhd, whose latest quarterly net profit tumbled by over 29%, has cautioned that higher claims and continued market liberalisation are the main challenges for general insurers moving forward.

LPI, which runs Lonpac Insurance, said the industry is shifting towards a fully market-based pricing as phase 2a of the market liberalisation plan kicks off in the fourth quarter of 2022.

This would exert pressure on the pricing of fire and motor products.

Such pressure on pricing would be an additional burden for Lonpac, at a time when the general insurer continues to be impacted by higher claims incurred ratio as business and social activities resumed to pre-pandemic levels.

In the third quarter ended Sept 30, LPI chairman Tan Sri Teh Hong Piow said Lonpac’s pre-tax dropped by 24.3% year-on-year (y-o-y) to RM87.8mil.

Lonpac’s claims incurred ratio surged to 42.5% in the third quarter, as compared to 33.6% a year earlier.

“Motor insurance had contributed to the deterioration in claims experience with its claims incurred ratio surging to 66.9% from 55.8% in the financial year of 2021,” said Teh, who is also founder and chairman emeritus of Public Bank Bhd.

The drop in Lonpac’s earnings has resulted in lower contribution to LPI.

In the third quarter, LPI recorded a net profit of RM74.75mil, which was a 29.07% decrease over the previous corresponding quarter.

Meanwhile, revenue was only marginally higher by 0.4% y-o-y to RM429.64mil from RM427.91mil.

“The lower net profit was partly due to the increase in taxation rate arising from the implementation of the Prosperity Tax.

“Net return on equity of LPI came in at 3.6% for the quarter under review against 5.1% previously with earnings per share reported at 18.77 sen, down from 26.45 sen achieved in the third quarter of financial year 2021,” he said.

Over the first nine months of financial year 2022 (9M22), LPI posted a net profit of RM193.04mil, which was down by 28.93% y-o-y from RM271.61mil a year ago.

The group’s revenue slipped by almost 5% y-o-y to RM1.22bil in the nine-month period.

LPI’s net return on equity was at 9.3%.

As for Lonpac, the 9M22 profit before tax came in 24.8% y-o-y lower at RM223.9mil.

“For 9M22, Lonpac’s motor claims incurred ratio had climbed to 77.3% from 59.3% registered in the previous corresponding period.

“The increase in repair costs and higher third-party bodily injury claims quantum had contributed to the deterioration in motor claims experience.

“Miscellaneous accident insurance also reported higher claims incurred ratio at 53.4% as compared to 41.8% in the financial year of 2021 (FY21), mainly due to higher claims incurred reported for medical and engineering insurances.

网友评论

热门标签