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| Sunday, 02 March 2003 |
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| News Business Features Editorial
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Eagle Insurance soars high Eagle Insurance Co. Ltd. completed a year of strong financial performance in 2002. It increased its total revenues by nine per cent to Rs. 2.9 billion during the year and recorded an operating income of Rs. 1.1 billion, a growth of 14 per cent over the previous year. Contributions to operating income from life and Non-Life businesses were Rs. 775 million and Rs. 282 million respectively. This is a 13 per cent growth in Life operating income and a 20 per cent growth in non-life operating income. The consolidate company profit after tax of Rs. 269 million, was a 37 per cent growth compare to 2001. Life business recorded Rs. 266 million as operating profits, a 31 per cent growth in 2002, while Non-Life and Asset Management businesses recorded operating profits of Rs. 49 million and Rs. 8 million respectively. The company also earned over 36 per cent as Return on Net Assets, which exceeds the 3 per cent average recorded for the last two years. Over the last five years, Profit After Tax has grown at an average rate of 17.9 per cent per annum, which amounts to a real growth of 10.6 per cent per annum on a compounded basis. The company was able to declare an increased dividend per share of Rs. 8. Earnings per share increased to Rs. 13.5 in 2002. Despite challenging external pressures, the Life business increased by nine per cent, recording a Gross Written Premium (GWP) of Rs. 1,827 million in comparison with 2001. The Corporate life business grew significantly by 52 per cent to record Rs. 187 million as GWP, and life business generated from individual policies grew by six per cent. The annualised new business premium recorded in 2002 was Rs. 662 million. These are the results of strategies adopted by the company focusing efforts on target marketing and continuous commitment to sales force development, supported by sales promotional activities. Following the independent actuarial valuation, the Company's Life Fund was noted to have grown by 22 per cent to Rs. 5.7 billion. This was the result of an increase in the Life Fund of Rs. 1 billion during the year. This once again demonstrates the company's long-term commitment to provide higher security to its Life policyholders and is well in line with internationally accepted solvency margin standards and local statutory requirements. "Leveraging on fund management capabilities and prudent and effective investment strategy focusing on creating long-term value versus short-term returns, resulted in the company declaring a very competitive policyholder dividend of 10 per cent. This rate compared very favourable considering that it is on a tax-free basis," a company spokesman said. The company set aside Rs. 10 million for an 'Eagle Insurance for living Loyal Customers' Children's Benefit Trust.' Non-Life business recorded commendable growth in 2002, despite intense competition in the market. GWP for 2002 was Rs. 910 million, a 25 per cent growth compared with 2001. This was a result of the focused strategies adopted by the company to capture identified businesses in selected market segments and client relationship management initiatives. The company successfully launched a web-enabled initiative to provide key clients with the capability of obtaining Marine insurance cover online. |
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