Eagle records steady profits
Pre-tax profit up 11% to Rs. 605 m:
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Highlights
* Further strengthens solvency providing
greater security to customers
* Declares dividend of Rs. 7 per share
* Maintains growth momentum in challenging
times
* Declares 10% gross dividends for Life
policyholders
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Eagle Insurance PLC Board of Directors has recommended a first and
final dividend of Rs. 7.00 per share for approval by its shareholders at
the Annual General Meeting of the Company.
In its constant endeavour to deliver value to all stakeholders, the
Company has declared a gross dividend of 10% to its life policyholders
in 2008, a media release from the company said.
The Company continues to maintain its record of steady profits
despite the many challenges posed by the external environment with
profit after tax reported at Rs. 464 million for the year. Pre-tax
profit recorded an increase of 11% over 2007 to reach Rs. 605 million
and this includes the gross up of tax withheld at source on interest
income from government securities of Rs. 171.2 million. The profit
performance of 2008 is in line with the Company’s expectations and
results in a Return on Net Assets of 27.2%.
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Deepal Sooriyaarachchi |
It is commendable that the Company has contained its growth in
management expenses at a satisfactory level of 11% in an environment of
relatively high inflation, and this has helped sustain the bottom line
performance. Total net assets grew by 10% in 2008 to reach Rs.2,224
million by year end. Eagle Insurance maintains a solvency ratio of 1.32
times the required solvency margin for Life business as at end 2008
where the required solvency margin was Rs. 663 million and the Company
maintained an excess in admissible assets of Rs. 209 million. The
solvency ratio for the General insurance business as at end 2008 was
3.19 times the required solvency margin where the required solvency
margin was Rs. 240 million and the Company maintained an available
solvency margin of Rs. 765 million.
In his review on the Company’s performance, Managing Director, Deepal
Sooriyaarachchi said, “Despite an extremely challenging macro-economic
environment, we are proud of our achievements in 2008. The Company’s
earnings were in line with expectations.
The Chairman of the Company, Craig Brackenrig said, “Eagle’s
committed employees and members of the direct sales force have continued
to deliver exemplary service to drive Eagle’s business forward.
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