LPI ' High Claims Ratio Impacted Underwriting Surplus

Stock Name: LPI
Company Name: LPI CAPITAL BHD

Research House: RHB

Price Call: SELL

Target Price: 12.15

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