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Eagle Insurance has recorded outstanding results for 2001 maintaining its strong position in the insurance industry, with revenue increasing to Rs. 2.7 billion, a 21% growth over the previous year, in spite of challenging market conditions. There was also a significant growth in profits compared to the previous year, with operating profit before restructure charges and intangible items increasing to Rs. 233 million, a 19% increase over the previous year. This year too the company returned a commendable performance with a return on net assets of 31.3%, a company press release said.

The proposed dividend per share increased to Rs. 6 and earnings per share increased by 20% over the corresponding period last year.

Life business which contributed significantly to overall company performance, recorded a growth of 14% with gross written premiums increasing to Rs. 1.67 billion compared to Rs. 1.47 billion in the corresponding period of the previous year. This achievement was due to continued emphasis on professional training of field staff and focussed strategies adopted. Eagle also launched a retirement fund for the benefit of long serving, value adding members of the 'Eagle Team with Wings", with the objective of ensuring the long term financial stability of Eagle Sales Associates. The company believes that this would encourage further professionalism and long term commitment of the sales persons.

The company also launched another successful phase of the Eagle Investment Plan in February 2001, which recorded a premium income of Rs. 130 million. A new Life product "Eagle Sunrise child Plan" was also launched in August, a result of listening to the needs of customers.

Eagle also increased the Company's Life Fund by one billion rupees bringing it to Rs. 4.6 billion as at end 2001 - a 27% growth over the previous year, following the annual independent actuarial evaluation. In evaluating the Life Fund Eagle maintains internationally accepted solvency margin standards, ensuring that the company has reserves in excess of required levels.

Eagle "Insurance for Living" Life policyholders dividend declared for 2001 is 11%, a 0.5% increase over the previous year. Eagle introduced this concept of Living benefits to Life policyholders at the inception of the company, turning a new page in the Life insurance industry of Sri Lanka. Under this system a separate investment account is maintained for every single Life policyholder, enabling the fund to accumulate on a compounding basis with the annual dividends declared. Since commencement of this system the company has consistently delivered higher dividends than the minimum rate guaranteed by the company.

Non Life business Premium increased to Rs. 730 million, recording a 6% growth despite a fiercely competitive market, through a focus on business that adds value to all stakeholders. Three Risk Management products were introduced during the year - Total Risk Solutions for Tea Factories, the Property Business Interruption Risk Engineering Service and the Health and Safety Management Consultancy Service, offering for the first time, risk management services on a commercial basis, through the Companies Risk Engineering Unit which has received ISO 9001 certification.

Investment income in Life and Non Life business increased to Rs. 771 million, a 48% increase over the corresponding period in the previous year due to the creditable performance of Eagle's Asset Management subsidiary - Eagle NDB Fund Management.

Eagle NDB Fund Management Company, a fully owned subsidiary of Eagle retained its strong position as market leader in the sector by recording Rs. 9.8 billion as funds under Management as at end 2001 and recorded a profit of Rs. 9 million a 89% growth over the previous year, overcoming a challenging year for the asset management sector.

The company invested heavily in technology during the year, installing the SAP accounting system, the "Prophet" system for advanced and efficient actuarial analysis and the "Insure 90" system for non life business, in order to adhere to and bring service to international standards.

During this period the company also successfully completed the restructure process of separating the business into two strategic business units to serve the Personal and Corporate customer segments. Thus from a year of dramatic change, Eagle moved over to a year of consolidation in 2001.

As a member of the Zurich Financial Services Group, Eagle benefits from the stability and international exposure gained in the area of products and services, training and technology and systems, from the parent company. Eagle Chairman Warwick Church said "Eagle has contributed to the global vision of the Zurich Group in transforming itself into a collaborative and empowered entity within the Group's global business framework". Eagle's stability is further strengthened by the local partner, the National Development Bank.

Warwick Churche, Nihal Welikala, Hermann Lischer and Eran Wickremaratne joined the board of Eagle during the year while Ranjit Fernando, Frank Schewlin and Alan Parsonson resigned from their positions as Directors.

"The company's financial stability is the foundation that enables the firm to embark on a course that would ensure future growth. The strategic initiatives taken, have aligned the company to the needs of the market, both current and anticipated and we believe the rewards would be reaped in the years to come". Eagle's Managing Director, Chandra Jayaratne said.

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Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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