Eagle Insurance Company Limited recorded consolidated revenue of Rs.1, 352 million for the first quarter of 2007. This reflects a growth of 24% over the corresponding period in 2006. The Gross Written Premium income of the Company of Rs.1, 327 million grew by 26% over the corresponding period in 2006. Life premiums recorded a growth of 21% whilst General insurance premiums grew by 37%, over the same period in 2006.

The Company earned a Net Profit Before Tax of Rs.38.3 million for the quarter. This was 3% less than the corresponding period in 2006. Profits recorded by the General insurance business of Rs.32 million, were 9% lower than the first quarter of last year. This was mainly due to an increase in net claims over 2006. Encouragingly, despite a two-digit inflation rate prevailing in the economy, management expenses for the period have been maintained at acceptable levels. It should be noted that, as in the previous years, the quarterly results of the Company do not include any contribution to profit from the life insurance business as this is determined upon the actuarial valuation that is only carried out at the end of each year.

Eagle's Bancassurance partnerships with NDB bank and Standard Chartered Bank have both contributed to results in the first quarter of 2007.

"Eagle Investment Insurance" - the Company's Unit Linked insurance product range was introduced through its direct sales force in the first quarter of 2007 and an encouraging start has been made to sales of this new product type. A unique feature of these products is that they are sold through specially trained and internally certified sales personnel. This best practice ensures that Eagle's valued clients are provided with the best and most professional financial planning advice.

Commenting on the Company's achievement Managing Director, Mr. Deepal Sooriyaarachchi said, "Our first quarter results of 2007 are satisfactory. A significant growth has been recorded in both Life and General businesses. We are confident that with this positive start we can sustain our continued growth momentum throughout the year."

Mr. Grant Barrans, the Chairman Eagle Insurance, commented "These are a solid set of results and I am pleased to note that Eagle Insurance continues to make good progress in terms of growth and innovation in the Sri Lankan market."

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 serving 40 million customers worldwide with Sterling Pounds 364 billion assets under management.