Financial Times

Eagle 9-month profit up 27 pct
Eagle Insurance made a consolidated Profit after Tax for the nine months ended 30 September of Rs.136 million, a growth of 27 % compared with the previous year.

“Effective cost management initiatives and high performance in investment income during the period resulted in a positive contribution to profits,” a company statement said.

Commenting on the company’s achievement, Chief Executive Officer, Deepal Sooriyaarachchi said, “Our results are satisfactory. The growth momentum fuelled by strengthening distribution capacity continues.

Focused business strategies are in place, and as indicated by the internal valuation of life business, year-end results will be achieved as planned.”
The company statement said Eagle recorded a growth of 14 % in Consolidated Revenue to Rs.3,020 million for the nine months of 2005, compared with Rs.2645 million for the corresponding period of 2004.

Total Gross Written Premium income Rs.2,732 million grew by 14% over the previous year. Life and Non Life businesses recorded a growth in written premium of 14% and 15% respectively over the previous year. This is considered a significant achievement, made possible by implementing focused business development initiatives.

The reported profits are after making a further provision for Incurred But Not Reported claims (IBNR) of Rs. 29 million in line with actuarial recommendations and the company’s prudent claims reserving policy. The Asset Management business of the company yielded a growth in Revenue including fee income of 16% and a net profit after tax of 11% over the previous year.

By maintaining solvency margins well above the requirements stipulated as per Solvency Margin (Long Term Insurance Rules 2002) and Solvency Margin (General Insurance Rules, 2004), the company has demonstrated its commitment to provide a superior level of security to its clients. Having assured a healthy solvency and adequate reserves, the Directors have resolved to pay an interim dividend of Rs 2.50 per share.

The company launched a plan for good health; Eagle HealthCare - a surgical and hospitalization cover with five different annual benefit limits, ranging from Rs. 35,000 – Rs. 100,000.

The product is designed to provide enhanced health insurance coverage mainly to existing and potential life insurance policyholders who presently enjoy the flexibility to add optional riders: Critical illness, Disability and Hospitalization to their basic insurance plans.

Demonstrating Eagle’s corporate social responsibility, the company sponsored the communication campaign of the Colombo Municipal Council initiative to provide a free ambulance service for the city to improve the survival chance of seriously injured accident victims. This initiative is known as “Emergency Rescue 110”.

Eagle also became the principal sponsor of the Civilian Bravery Awards presented by the Foundation For Civilian Bravery. These awards were presented in recognition of those who have saved lives at the risk of their own.

Eagle’s sponsorship is a part of the company’s endeavour to appreciate and acknowledge human compassion and bravery with the objective of encouraging the nation to value selfless actions.

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