The Company registered a steady growth during 2007 with Total Revenue of Rs.5, 875 million and Gross Written Premium (GWP) reaching Rs.5,655 million. This is an expansion of 22% for both indicators over the previous year. Life insurance business continues to account for a significant proportion of the top-line performance.
Consolidated profit before tax increased to Rs.546 million from Rs.539 million in 2006 recording a marginal growth of 1%. This relatively low growth in profit is attributable to new business strain in Life insurance and the higher claims experienced in General insurance.
The Company's net assets recorded a growth of 16% over the previous year. The Life Policyholders' fund stood at Rs.12, 306 million as at 31.12.2007. Sound profits and cash flows have enabled the Company to deliver a dividend per share of Rs. 9.50 in 2007.
Partnering with Aviva
Eagle's partnership with Aviva is dynamic and complimentary. The unique expertise Aviva has acquired with its years of global experience embedded into Eagle's resilient far-sightedness and stability, has provided the Company the right combination to serve our customers. Our partnership with Aviva not only reinforces our professionalism but also permeates a range of global best practices in many areas of work and infuses a very high degree of dynamism.
Risk Management & Governance
The Company directed a change in Risk Management, expanding the boundaries of the function from support service level to total enterprise level. This was initiated and well supported by the group's expertise and structured approach to risk management.
Good governance a facet we always treasure, is an integral part of our culture, structure and processes. We have set benchmarks in the industry in self regulation and have led the way in ethical selling. Setting another benchmark in the industry, Eagle introduced a voluntary internal certification process of the technical competencies of our Life field force, ensuring excellent product knowledge and service capabilities. In 2007 February the Company obtained an independent rating of its governance framework and practices from Det Norske Veritas (DNV) - UK, a leading global rating Company. Eagle is the first company in Asia to have obtained an independent rating from DNV.
Solvency Margins
Effective monitoring of Admissible assets enabled the Company to maintain the solvency levels well above the minimum requirement. Life fund maintained a solvency ratio 1.20, with Rs.114 million above the prescribed 5%. General insurance business maintained a Solvency ratio of 4.06 which was 4 times the minimum requirement.
