LPI: Worth to investigate further

One of the stocks that I like is LPI. I have always like their business model: conservative under-writing and earning money from underwriting and not through investment(big bulk of it is in bond). It has bounced back about 16% from the low. Is it safe to jump back in? Well the first question is: how much does it worth ? It's worth to investigate further over the weekend.

PETALING JAYA: Insurer LPI Capital Bhd does not expect a sharp spike in claims ratio despite the present economic crisis.

According to a representative of the management who declined to be named, claims ratio generally increased during poor economic conditions but, with proper risk management and prudent underwriting practice over the years, LPI’s claims ratio is unlikely to be adversely affected.

Nonetheless, the insurer has seen a large drop in demand from certain sectors due to the economic slowdown.

“The impact was seen in the marine insurance sector, of which import and export trade suffered a noticeable reduction,” he told StarBiz in an e-mail reply.

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