Eagle records 18% revenue growth

Eagle Insurance recorded a consolidated revenue of Rs 1,594 million for the first quarter of 2008, representing 18 per cent growth over the corresponding period in 2007.

The total gross written premium income grew by 14 per cent to Rs 1,516 million compared to the previous year. Life and general insurance premiums recorded a growth of eight per cent and 27 per cent respectively with Rs 948 million and Rs 568 million.

The Group recorded a net profit before tax of Rs 21 million for the quarter. This is 45 per cent lower than the corresponding period of 2007. The dip in performance was due to the large number of claims settled in the general insurance business.

The Group's commitment towards expense management initiatives has ensured that the operating expenses are within the budget, despite rising costs.

As in the previous years, the result for the quarter does not include contribution from the long-term business, which is determined annually after the actuarial valuation and included in the full year results.

Commenting on the Company's achievement Managing Director, Deepal Sooriyaarachchi said, "General insurance business has performed satisfactorily during the first quarter of 2008. We have launched strategic initiatives to improve the net claims cost for the remaining period of 2008.

Sound strategies are in place to secure a rapid growth in Life insurance business. We are confident that our initiatives are well-suited to the current environment and will produce satisfactory results at year-end."

The Chairman, Eagle Insurance, Bert Paterson commented, "We have an aggressive growth strategy. The Board remains confident that the Company will forge ahead even in this very challenging business environment."