Lun Ping (LPI, 8621, Main Board Financial Stock) net profit for the first quarter of fiscal year 2022 shrank by 25.2% year-on-year to RM61.528 million, compared with RM82.31 million in the same period last year
Revenue in the first quarter fell 9.77% year-on-year to RM397.739 million, compared with RM440.786 million a year earlier, Lunping told the exchange on Thursday.
“While business sentiment has improved since the beginning of the year, the group has had a slow start and has been affected by higher claims and poor portfolio performance,” said Luen Ping founder and chairman Tan Sri Dr.
The company explained that the decline in revenue was mainly due to lower premiums, as well as additional costs of RM6.4 million for reinsurance due to the flood event in December last year, as well as the impact of increased technical reserves.
Lun Ping Capital's filing with Bursa Malaysia
Net profit for the first quarter of the financial year ended March 30, 2022 was RM61.53 million, or 15.44 sen per share, down from RM82.31 million, or 20.66 sen per share, in the same period last year.
Turnover for the first quarter fell 9.77% to RM397.74 million from RM440.79 million, mainly due to a 7.2% drop in gross premium income from general insurance business or RM28.5 million.
On a quarterly basis, net profit decreased by 15.79% from RM73.07 million in the fourth quarter of fiscal 2021, while revenue also decreased by 7.26% from RM429.04 million.
The group's chairman Tan Sri Teh Hong Biu said Lun Ping Insurance's first-quarter profit was partially affected by the RM6.4 million extra cost incurred for reinsurance reinsurance due to the massive flood in December last year, as well as an increase in technical reserves.
Looking ahead, he said demand for insurance is expected to increase as the economy recovers and business activity resumes.
“Despite some headwinds in the first quarter, the group believes that with the strengthened distribution channels and joint efforts to execute the business plan, Lunping will be able to deliver satisfactory performance during the year.”
