Eagle records 10% growth in Q3 revenues

PROFITS: Eagle Insurance Company Limited recorded a consolidated revenue of Rs 3,309 million for the nine months ended September 30, 2006.

This was a 10% increase over the corresponding period in 2005. The total gross written premium income of the company was Rs. 3,091 million, an increase of 13% over the corresponding period in 2005.

The Life business contributed 70% of total gross written premium and the non life business, 30%. Growth of gross written premium in each of the company's main businesses was very satisfactory given the challenging political and macro economic conditions, with increases of 12% and 16% in the Life business and non life business respectively.

The profit before tax for the period was Rs.71.6 million, 51% lower than the corresponding period of 2005, mainly due to high non life claims and lower investment income.

As in previous years, the quarterly results do not include a contribution from the life insurance business, which is determined annually after the actuarial valuation at the year end and is included in the full year results.

Although the year-to-date profit is significantly lower than the same period last year, an interim dividend of Rs. 2.50 per share has been approved by the board, which maintains the interim dividend at the same level as the prior year.

The amount of any subsequent final dividend will depend upon the level of profits reported in the audited accounts for the full year.

Commenting on the company's achievement Managing Director, Deepal Sooriyaarachchi said, "Our third quarter results are satisfactory. We are in the process of expanding our distribution reach.