Eagle revenue grows 18% to Rs. 1,594 m in Q1, 2008

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

The total gross written premium income grew by 14% to Rs. 1,516 million compared to the previous year. Life and general insurance premiums recorded a growth of 8% and 27% 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% 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 previous years, the result for the quarter does not include contributions 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 the 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.

Chairman, Eagle Insurance, Bert Paterson said, “We have an aggressive growth strategy.

The Board remains confident that the Company will forge ahead even in this very challenging business environment.”