Cambodia a promising market for LPI Capital

KUALA LUMPUR: LPI Capital Bhd is upbeat on its prospects in Cambodia, where it set up CampuBank Lonpac Insurance Plc last August with Public Bank Bhd.

Executive director Tee Choon Yeow said Cambodia was a “very promising” market for the group.

“Cambodia is a completely new market and there are only about five licensed insurers in this country. At the same time, the insurance industry penetration is very low, less than 10%. We are looking forward for more profit in Cambodia,” he said after the company AGM yesterday.

LPI Capital, which has a 45% interest in CampuBank Lonpac Insurance, provides general and personal insurance products through subsidiary Lonpac Insurance Bhd.

The company aimed to be the leading general insurer in Cambodia, Tee said, adding that CampuBank Lonpac Insurance currently had no agents but would soon be recruiting.

He believed its operation in Cambodia would contribute positively to the group going forward. Currently, overseas operations contribute about 12% to the group’s revenue with the bulk of it from Singapore.

Tee said LPI Capital would not discount the prospects of venturing into Vietnam since it would be able to leverage on Public Bank’s presence in the country.

LPI Capital, he said, had been conducting feasibility studies in Vietnam and, if it were to venture into Vietnam, it would possibly use the same model in Cambodia.

Meanwhile, LPI Capital intends to maintain the levels of its interim and final dividends.

“We believe in paying high dividends and we expect to maintain the dividend payout,” Tee said.

For the financial year ended Dec 31 (FY07), LPI declared an interim dividend of 30 sen, a final dividend of 55 sen and a special dividend of 25 sen per share.

LPI posted a net profit of RM87.8mil on revenue of RM551.6mil in FY07, up from RM78.1mil and RM473.5mil respectively in FY06.

Earnings per share improved to 63.8 sen from 56.6 sen previously.