LPI ' High Claims Ratio Impacted Underwriting Surplus

Date: 
2012-04-10
Firm: 
RHB
Stock: 
LPI
Price Target: 
12.15
Price Call: 
SELL
Last Price: 
13.22
Upside/Downside: 
-1.07 (8.09%)
LPI ' High Claims Ratio Impacted Underwriting Surplus
                                                                            Underperform (Downgraded)
Results Note
''       1QFY12/12 net profit (-18.5% yoy) was below expectations, accounting for only 17-18% of our and consensus full-year forecasts due mainly to higher-than-expected claims ratio of 60.1%.
''       Our fair value is lowered to RM12.15 (from RM13.60) based on unchanged target PER of 16x FY12 EPS. Downgrade to Underperform (from market perform).

Source: RHB Research - 10 April 2012
Discussions
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Li Zhenron

LPI has a good track record and its potential remains intact. PBB's insurance arm will move together with the bank on the profit path.

2012-08-06 12:46

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