KUALA LUMPUR: Kenanga Research said LPI Capital Bhd
could face headwinds as the insurance claims ratio is expected to rise to pre-pandemic levels amid increasing activity during the country's endemic phase.
In a note, the research firm said motor claims are expected to increase with the resumption of economic activity, prompting a reduction in its earnings projections for LPI for FY22 and FY23.
In addition, Kenanga anticipates continued competitiveness in the fire insurance space, which will further add to pressure in LPI Capital Bhd's key segment.
"The fire insurance space will likely to continue its competitive streak from 2017’s detariffication with an upcoming review in 2HFY22 likely to steer towards more consumer-centric pricing models.
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