3 Things Investors Should Know About Malaysian Insurer LPI Capital Berhad

By Lawrence Nga – October 27, 2016 

LPI Capital Berhad (KLSE: 8621.KL) is a Malaysia-listed general insurance company that has operations in three countries, namely, Cambodia, Malaysia, and Singapore.

Investors may want to learn more about LPI Capital.

Here are three useful pieces of information about the company:

1. Growth of gross written premiums

The gross written premium measures the amount of insurance premiums written by an insurer. It can be seen as a proxy for an insurance company’s revenue.

From 2006 to 2015, LPI Capital’s gross written premium has grown from RM424.44 million to RM1.251 billion. That’s a compound annual growth rate of 12.8%.

2. The combined ratio

The combined ratio measures what an insurer pays out to its policy holders as a percentage of its premiums earned.

In other words, it is the cost of running an insurance business. In general, the lower the combined ratio is, the better it could be.

In 2015, LPI Capital reported a combined ratio of 66.6%, down slightly from the 68.8% seen in 2014.

3. A history of growing dividends

LPI Capital has continuously paid an annual dividend over the last 10 years. According to S&P Global Market Intelligence, its dividend has also grown from RM0.31 per share in 2005 to RM0.70 per share in 2015.


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