Eagle achieves satisfactory performance in 1Q, 2006

The Eagle Group recorded a consolidated revenue of Rs. 1,089 million, a growth of 18% over 2005. Profit before tax Rs.39.5 million recorded a growth of 10% over the corresponding period of 2005.

Gross Written Premium income of Life and Non-life businesses Rs.1,055 million, recorded an aggregate growth of 18% over the previous year. Life premiums recorded a growth of 15%, whilst Non-life premiums grew by 26% over 2005. Significant investment made by the company during the latter part of 2005 on expanding the distribution, yielded positive results.

Profit before tax recorded for Non-life business was Rs.35.1 million, a growth of 42% over 2005. Effective expense and resource management initiatives contributed to maintaining expenses within budgets.

The Asset Management business of the company recorded a profit before tax of Rs. 4.2 million, compared to nearly Rs. 12 million in 2005, which included much higher levels of performance-based income on inter-company funds under management.

Eagle Insurance went through a smooth transition of ownership from NDB to Aviva plc, subsequent to Aviva's acquisition of a 51% stake in the company. Leveraging upon Aviva's global experience, the company is in the process of aligning its processes and procedures with those of the Aviva Group in identified business and service areas to deliver a superior service to customers.

The company also continues to invest in enhancing the capabilities of distribution channels and further extending its customer reach.

Commenting on the company's achievement Managing Director, Deepal Sooriyaarachchi said "Our first quarter results are satisfactory and our business strategies will continue to strengthen our market position. We are also in the process of leveraging the global expertise of Aviva in bancassurance to enhance the already achieved growth momentum"