Eagle achieves satisfactory performance in the first quarter -May 2006
The Group recorded a consolidated revenue of Rs. 1,089 million, which constitutes a growth of 18% over 2005. Profit before tax Rs. 39.5 million recorded a growth of 10% over the corresponding period of 2005.
Gross Written Premium income of Life and Non-life businesses Rs. 1,055 million, recorded an aggregate growth of 18% over the previous year. Life premiums recorded a growth of 15%, whilst Non-life premiums grew by 26% over 2005. Significant investment made by the Company during 2006 on expanding the distribution, yielded positive results.
Profit before tax recorded for Non-life business was Rs. 35.1 million, a growth of 42% over 2005. In line with the Company's prudent claims reserving policy and actuarial recommendations, a further provision for incurred but not reported claims (IBNR) of Rs. 6.5 million was made during the quarter. Effective expense and resource management initiatives contributed to maintaining expenses within budgets.
The Asset Management business of the Company recorded a profit before tax of Rs. 4.2 Million, a negative growth as against 2005 mainly due to a decline in performance fee income on inter-company funds, resulting from revisions made to the benchmarks used for computing performance fees. This result however stands favorable to the budget.
Eagle Insurance went through a smooth transition of ownership from NDB to Aviva plc, subsequent to Aviva's acquisition of a 51% stake in the Company. Leveraging upon Aviva's global experience, the Company is in the process of aligning its processes and procedures with those of the Aviva Group in identified business and service areas to deliver a superior service to customers. Further, the Company continues to invest on enhancing the capabilities of the distribution and further extending its customer reach.
Commenting on the company's achievement Managing Director, Mr. Deepal Sooriyaarachchi said "Our first quarter results are satisfactory and business strategies which are in place will ensure that the year-end results will be achieved as planned. We are also in the process of leveraging the global expertise of Aviva in bancassurance to enhance the already achieved growth momentum"
