Financial Times

Eagle reports 17 pct fall in 1H profits to Rs 75m
Eagle Insurance has reported consolidated profit after tax for the first six months fell 17 percent to Rs. 75 million, compared with the previous year.
A company statement said the reported profits were after making a provision for Incurred But Not Reported claims of Rs 22 million in line with actuarial advice and the company’s prudent claims reserving policy.

“Our first half results are satisfactory,” declared Deepal Sooriyaarachchi, Eagle’s Chief Executive Officer. “The business strategies, specially the strategies that are in place to enhance distribution effectiveness, facilitated through focused capability development with international exposure, will ensure that the year-end results will be achieved as planned.”

Eagle recorded a growth of eight percent in consolidated revenue to Rs. 1,876 million compared with Rs. 1742 million in the first half of 2004. Non-life written premium grew by 11 percent to Rs. 521 million from Rs. 469 million over the same period.

“This is considered a significant achievement in the context of increased competition and continuous efforts in streamlining the non-life business portfolios,” the statement said. Life gross written premiums recorded a growth of 12 percent over 2004.

Focused expense management and resource management initiatives during the period resulted in a positive contribution to profits of all lines of business, the statement said. The asset management business of the company yielded a growth in fee income of nine percent and in net profit after tax of 14 percent over the corresponding period of the previous year.

Back to Business