Corporate

Eagle records 32% growth in revenue

Eagle Insurance PLC recorded a consolidated revenue of Rs. 6,742 million as at end of 3rd Quarter, 2009. This reflects a growth of 32% over the corresponding period in 2008.

Total Gross Written Premium income of Rs. 4,697 million recorded a growth of 7% compared to the previous year.

The Group's net profit performance for the nine months ended September 30, is impressive at Rs. 322 million, being 6.3 times the amount recorded in the corresponding period in 2008.

This growth is mainly attributed to the significant increase in investment income and the improved underwriting results of the General insurance business.

The financial results for the first nine months do not include a bottom-line contribution from the long-term insurance business as it is usual that this profit is determined at the end of the financial period, after the actuarial valuation is carried out.

As such, the profit from long-term insurance business is included in the financial results for the year.

The Company has released its quarterly financial results to the Colombo Stock Exchange in terms of the new Listing Rules.

The quarterly financial results are now made available to the shareholders in the Company's web site and any shareholder who wishes to obtain a printed copy can, on request, obtain a copy from the Company.

Commenting on the Company's performance, Managing Director, Deepal Sooriyaarachchi said "This is a solid set of results.

We are now yielding the benefits of the strategies set in place at the beginning of 2009, coupled with the Eagle Team's focused contribution and commitment."

William Lisle, Chairman, Eagle Insurance commended the Company's performance and added.

"I am confident that the Company's strategies in place for the growth of the business will deliver satisfactory performance for 2009, over 2008.

We are committed to bring in Prosperity and Peace of Mind to all our stakeholders."

Eagle recently started its expansion drive in the North and the East with the launch of the Jaffna branch.

Eagle will also expand further in the North and East with the forthcoming opening of branches in Batticaloa and Vavuniya.

Along with these planned branch openings a total of five Eagle branches will cover both the Northern and Eastern parts of the island making the Company very well positioned to cater to the needs of the population in the North and East.

In a unique Private-Public Partnership, Eagle entered into an MOU with Wayamba University, the only university to offer a B.Sc. Special Degree Programme in Insurance, to provide a certificate level qualification in Personal Financial Management exclusively to the Insurance Advisors of Eagle.

This will enhance the financial knowledge of Eagle agents.

Through this capability development Eagle customers will receive the best advice, which is one of the Company's key corporate responsibilities.

Renuka IPO oversubscribed 12 times

As Managers and Registrars to the Renuka Agri Foods Initial Public Offer (IPO) of 120 million shares of LKR2.25, Merchant Bank of Sri Lanka PLC said the initial offer has been oversubscribed by more than twelve (12) times.

The joint effort of Merchant Bank of Sri Lanka PLC, Renuka Agri Foods Limited and Capital Alliance Holdings Limited, considering the opportunity in agri based companies in Sri Lanka, was the key towards the success.

The confidence placed on the future growth of Renuka Agri, affordability, strong distribution network in overseas countries and investor eagerness for a relatively low cost investment of a promising company was the key dynamics for investors, who placed a strong confidence to subscribe the issue.

Our experiences on similar IPOs that were handled in more precise manner especially during weak market conditions prevailed in past, is the key for processing such large investments and applications within a shorter timeframe towards success.

The IPO was oversubscribed by 12 times with large amounts of investments surging even after closure of the IPO on the initial day of opening November 27 by 10 am in the morning.

At present, we have received over 5409 applications worth more than LKR 3.2 Bn. The company will make a public announcement on the basis of allotment and oversubscribed amounts will be returned in the 3rd week of the month.

Kshatriya consolidates healthy growth

Kshatriya Holdings PLC, the diversified business group with interests in financial services, dairy products, and property development, has reported healthy revenue and profit growth at a consolidated level in the first half of 2009-10.

The Group, which includes First Capital Holdings PLC and Kotmale Holdings PLC has posted a profit after tax of Rs. 202.6 million in the six months ending 30th September, 2009, a noteworthy recovery from a loss of Rs 278 million in the corresponding period of last year.

Consolidated profit before tax at Rs 587 million reflected a 343 per cent growth over a loss of Rs 241.7 million for the first half of 2008-09, while revenue grew 21 per cent to Rs 1966 million in the review period, according to figures released to the Colombo Stock Exchange this week. Profit attributable to equity holders of the parent company improved to Rs 68 million from a loss of Rs 278.5 million a year earlier.

A spokesman for the company attributed the turnaround to tough decisions to exit from loss making businesses, reduce staff, sell assets and increase its investments in the profitable areas of business.

At company level, Kshatriya Holdings reduced its losses to Rs 117.5 million in the period reviewed from Rs 156.9 million. The spokesman said the company continued to be burdened by high finance costs, which increased by 20 per cent to Rs 117.4 million in the six months under review. Revenue at company level grew 24 per cent to Rs 21.4 million, and the company posted a nominal operating profit, from an operating loss of Rs 23.7 million in the first half of last year.

"We are on the path to recovery at company level and can see the light at the end of the tunnel," the spokesman said, adding that prospects at consolidated level were expected to remain strong for the rest of the year.

In early 2008, Kshatriya Holdings restructured management to enable controlling shareholders to take a more active role in the management of the company and began a rationalization of its activities. An exit from retail marketing and garment finishing, followed by reductions in personnel and cuts in administrative expenses were the genesis to its recovery.