Thursday, 26 February 2004  
The widest coverage in Sri Lanka.
Business
News

Business

Features

Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

Mihintalava - The Birthplace of Sri Lankan Buddhist Civilization

Government - Gazette

Silumina  on-line Edition

Sunday Observer

Budusarana On-line Edition

Marriage Proposals

Classified Ads


Eagle posts Rs. 318 million profit in 2003

Even in the midst of a shareholder change and natural disasters that took place in 2003 affecting insurance businesses. Eagle was successful in recording a growth of 18% in consolidated profit after tax to Rs. 318 million compared to Rs. 269 million in 2002, a media release from Eagle Insurance Company Ltd. said.

The prudent investment strategies adopted reaped its benefit by generating buoyant stock market returns, helping more than offsetting the negative impact of the low interest rates, contributing significantly to the growth in consolidated profits.

Relationship management focused Target Marketing, effective expense control measures, efficient resource management and high re-insurance profit commissions also contributed to the high-consolidated profit.

The return on net assets for 2003 was 32%. Consolidated revenue for the year was at Rs. 3.3 billion, a growth of 13% from Rs. 2.9 billion. The growth in revenue were 11% for life, 25% for Non life and 37% for asset management.

Eagle being a niche player committed to focusing on identified target markets for optimum value creation, the significant revenue growth achieved, despite challenging external market conditions, stands testament to the success of the integrated marketing strategy of the company.

Despite the natural disasters experienced in the second quarter, annualised new business premium on individual life recorded a growth of 13% with improved retention and significantly enhanced average premium value per policy that rose to Rs. 18,000 from Rs. 15,000.

"This improvement was a direct out-come of the effective distribution achieved by developing the capabilities of sales management and enhancing the professionalism of field force", an Eagle spokesman said. He said "this also signifies the emergence of long-term benefits upon the successful implementation and consolidation of target marketing strategies pursued in recent years".

Eagle's Life fund increased to Rs. 6.6 billion, a 16% growth compared to 2002. The surplus generated from long-term insurance business was Rs. 215 million. Eagle declared a life policyholder's dividend net of tax of 8.5%, considered competitive in the low interest rate environment.

The 18% growth in Non Life Gross Written Premium is mainly attributed to clear marketing strategies adopted to capture selected businesses in identified market segments fully supported by the insurance broker community. This was further reiterated by client relationship management initiatives and innovative service parameters introduced to promote and manage the present product offerings.

Maintenance of a net combined ratio of 98% despite the large claims incurred due to floods, signifies the ability of the company to meet its commitments while maintaining profitability driven professional underwriting.

The fund management arm of the business, Eagle NDB Fund Management Company, also recorded a substantial growth in revenue of over 37%, attributable mainly to the performance fees earned. The funds under management stood at Rs. 13 billion at the end of December 2003. Eagle NDB's profit was Rs. 16 million, a 97% growth over the last year.

Eagle also made significant reduction in operational expenses and improved efficiency in 2003, when in record time, implemented the latest version of SAP as their financial package. Eagle considers the success of record time implementation, a direct outcome of world class management practices that the company adopts, especially signifying a work culture based on team spirit.

As a responsible corporate citizen, the Company continued its efforts in 2003 to add value to the society. Enhanced awareness of using firecrackers safely during festive seasons and of the danger of bathing in unsafe tanks in Anuradhapura during Poson, resulted in containing related accidents to near zero level.

National Safety Awards, conceptualised by Eagle to recognise the safest workplace in the corporate sector continued with a widened scope.

In addition to recognising excellence in education by providing Higher Education scholarships to the nation's most promising children who excel at Year 5, the Company initiated the 'Eagle Award of Excellence' to recognise eminent Sri Lankans and their exceptional contribution to the development of societal well-being of the country, Dr. Lester James Peries and Pandit Amaradeva were the first recipients of this award.

Commenting on the achievement, Hemaka Amarasuriya, the Chairman said "posting of impressive results, in the midst of a shareholder change and natural disaster environment in 2003, is a noteworthy achievement.

"We firmly believe, peace and political stability need to be restored without delay, to make the overall business environment more conducive to implement strategies that will ensure Eagle's emergence as a stronger entity in the financial services sector whilst adding value to all stakeholders.

British Council

www.imarketspace.com

www.lanka.info

www.continentalresidencies.com

www.ceylincoproperties.com

www.ppilk.com

www.singersl.com

www.crescat.com

www.peaceinsrilanka.org

www.helpheroes.lk


News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries


Produced by Lake House
Copyright © 2003 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager


Hosted by Lanka Com Services