August 2007 Colombo: Eagle Insurance PLC reported a consolidated revenue of Rs.
2, 674 million for the first six months of year 2007. This reflects a growth of 21% over the corresponding period in 2006. The gross written premium income of the Company of Rs.2, 549 million grew by 22% over the corresponding period of 2006. Life insurance premiums recorded a growth of 17% and general insurance premiums, a growth of 35% over the same period in 2006.

The net profit before tax of Rs.95.5 million earned by the Group, recorded a growth of 61% over the same period in 2006. The profits of Rs. 81 million earned by the general insurance business were 64% higher than the first half of last year. This was mainly due to higher net earned premiums and investment income earned on fixed income securities. Continuous commitment to expense management initiatives helped the Company to keep the Group’s operating expenses for the period within acceptable levels. The profit of Rs.14.5 million earned by the asset management business represents a growth of 66% over the first half of 2006.

As in previous years, these half year results do not include a contribution from long term life insurance business. Profits from this line of business are determined annually after the actuarial valuation at the year end and are included in the full year results.

Having pioneered bancassurance distribution in Sri Lanka, this year Eagle Insurance signed a bancassurance partnership with Sampath Bank – the Company’s third bancassurance agreement. Eagle Insurance will offer a wide spectrum of life and general insurance financial solutions to Sampath Bank’s customer base of 900,000 individuals and 500 large corporate customers, via 100 bank branches. The Company’s bancassurance partnerships with NDB bank and Standard Chartered Bank have continued to contribute positively to results in the first half of year 2007.

The Company launched its latest CSR platform – “Creating an Equally-abled Society”. This project is aimed at enhancing the competencies of the educators of “differently- abled” children. The single minded focus of the project is to make the “differently-abled”, “equally-abled”, so that they may achieve their potential and evolve into fulfilled and productive citizens.

Commenting on the Company’s achievement the Managing Director, Mr. Deepal Sooriyaarachchi said: “Our first-half results are satisfactory. We are pleased that the business strategies put in place to enhance distribution effectiveness are yielding results. We are also pleased to have signed-up our third bancassurance partnership, which is with Sampath Bank.”

Encouraging Deepal Sooriyaarachchi and the Eagle team, Mr. Grant Barrans, Chairman of the Company commented: “These results reflect Eagle's commitment to growth and innovation. Taken together with Eagle's very strong Corporate Social Responsibility profile I feel they clearly show that Eagle is a company which customers , shareholders and staff can all be proud of.” .

In February 2006, the Aviva group acquired a majority stake in Eagle, with National Development Bank remaining a significant shareholder. Aviva is the world’s oldest insurance group, with a history dating back 300 years to 1696. Today it is the world's fifth-largest insurance group and the biggest in the UK. The group has 59,000 employees world-wide, serving 40 million customers with Sterling Pounds 364 billion assets under management.

For further information, please contact: Nishanthi Gunawardena 0112310078