Eagle records 21 per cent growth in first half

Eagle Insurance PLC reported a consolidated revenue of Rs. 2,674 million for the first six months of 2007.

This reflects a growth of 21 per cent over the corresponding period in 2006. The gross written premium income of the Company of Rs. 2,549 million grew by 22 per cent over the corresponding period of 2006. Life insurance premiums recorded a growth of 17 per cent and general insurance premiums, a growth of 35% over the same period in 2006.

Commenting on the company's achievement Managing Director Deep- al Sooriyaarachchi said: "Our first-half results are satisfactory. We are pleased that the business strategies put in place to enhance distribution effectiveness are yielding results.

We are also pleased to have signed-up our third bancassurance partnership, which is with Sampath Bank."

The net profit before tax of Rs. 95.5 million earned by the Group, recorded a growth of 61 per cent over the same period in 2006.

The profits of Rs. 81 million earned by the general insurance business were 64 per cent higher than the first half of last year.

This was mainly due to higher net earned premiums and investment income earned on fixed income securities. Continuous commitment to expense management initiatives helped the Company to keep the Group's operating expenses for the period within acceptable levels.

The profit of Rs. 14.5 million earned by the asset management business represents a growth of 66 per cent over the first half of 2006.

As in previous years, these half year results do not include a contribution from long term life insurance business. Profits from this line of business are determined annually after the actuarial valuation at year end and are included in the full year results.

Having pioneered bank assurance distribution in Sri Lanka, this year Eagle Insurance signed a bank assurance partnership with Sampath Bank - the company's third bancassurance agreement.