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| Sunday, 19 February 2006 |
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Business |  |
| News Business Features Editorial
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Eagle net profit surpasses half a billion mark Eagle Insurance recorded an impressive performance for the year 2005, recording a group net profit after tax of Rs. 515 million, a growth of 103% over 2004. Even if 2004 profits are adjusted for special tsunami related expenses, the profit growth is still attractive at 50%. The consolidated balance sheet was further strengthened with Net Assets recording a growth of 36% over the previous year. This is a reflection of Eagle's effective execution of planned strategies in the areas of revenue expansion, investments and expense management. The Group also maintained its solid track record in delivering impressive shareholder returns with a Return on Net Assets (RONA) of 35% for 2005. The Company paid an interim dividend of Rs. 2.50 per share in 2005 and the Directors now propose a final dividend of Rs. 5.75 per share. The Consolidated Revenue of Rs. 4,277 million recorded a commendable growth of 15%. Commenting on the performance, Deepal Sooriyaarachhci the Managing Director of Eagle Insurance said, "We are delighted with our performance specially considering that 2005 has been a very challenging year for the industry".The Life business continued to maintain its strong market position by recording Gross Written Premium of Rs. 2,833 million, a growth of 13 % over the previous year. This achievement was a result of focused business development activities and strategic allocation of resources into the expansion of distribution. In addition to the top line growth, Eagle was also successful in enhancing its customer retention. During 2005, the Life fund grew from Rs. 7,985 million to Rs. 9,238 million recording a 16 % growth. This value creation was possible due to the combined contribution of new business, retention and prudent investment strategies. The increase in average policy value further reflected the Company's efforts towards improving its quality of business. Benefits, losses and expenses of the Life business increased by 63% primarily due to policy maturities and gratuity claims. Stretching beyond its insurance liabilities, the Company made a premium grant of three months to the most deserving tsunami-affected Life policyholders. |
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