Eagle validates Post Tsunami Solvency, Claims Provisions and Admissibility of Assets
- 23 January 2005
In releasing the interim financial performance details of 2004, Eagle has validated the adequacy of solvency, claims provisions and admissibility of assets in line with the standards stipulated by the Insurance Regulator. This is also in keeping with the best corporate governance practices and prudent financial policies consistently adopted by the Company.
Eagle was successful in recording a growth of 11% in consolidated revenue amounting to Rs. 3,723 Mn in 2004, compared to Rs. 3,339 Mn in 2003. The 15% growth in Life gross written premium in 2004 is considered a significant achievement in highly competitive market conditions. The Company recorded a consolidated net profit after tax of Rs. 254 Mn for the year 2004, a reduction of 20% in comparison with the achievement in 2003. However, adjusted for estimated Tsunami related special relief expenses, the consolidated net profits would have been an increase of 8% above last year.
Following the independent Actuarial valuation it was revealed that the Company's Life Fund has grown by 21% to Rs.8.0 billion, an increase in the Life Fund of Rs.1.38 billion during 2004. The independent actuary has validated that the Company has maintained a solvency in excess of the required minimum margin and reserved for all claims, as recommended by him.
This once again demonstrates the Company's long term commitment to provide higher security to its Life policyholders and is well in line with internationally accepted standards and local statutory requirements. An independent non-life actuary has validated the Company's claims reserves including Incurred But Not Reported (IBNR) claims reserves. The Company has made a further provision in line with the prudential margins recommended by the actuary.
"Independent actuarial validations prove that the prudent reserving methods adopted by Eagle makes the Company resilient in the face of natural disaster related impacts and is well positioned to continue to add value to all its stakeholders whilst demonstrating at all times its financial strength and stability. This is a manifestation of Eagle's core values of Accepting Risk with Responsibility and being Ethical. The fact that Eagle went beyond the contractual obligations to support clients affected by Tsunami was the demonstration of the other core value of Dedication to Customers" said Mr. Chandra Jayaratne Managing Director, Eagle Insurance highlighting the importance of committing to a value system by a corporate entity.
