175% growth in profits at Asian Alliance Insurance

Asian Alliance Insurance Co. Ltd., relatively a new player in the Insurance Industry, crossed the Rs.1 billion mark in Gross Written Premium. Demonstrating the Company's growth phase, the Company's Gross Written Premium recorded Rs. 1.16 billion, a 25% growth over previous year and the Profit After Tax increased by 175% to achieve Rs. 70.8 million. The Earnings per Share increased to Rs. 2.83 in 2006, a three-fold increase.

The Company's investments grew by 64% to reach Rs. 925 million by December 2006.

Asian Alliance has maintained the Solvency in its life insurance in excess of the minimum margin and has met the required solvency margin of Non Life in accordance with the new rule applicable in year 2007.

The company delivered its strongest results to date by executing its strategic and operational goals in year 2006, despite the political instability coupled with the escalating hostilities in the North and East, inflationary pressure and the stiff competition in the market. In 2006, the company's strong organic growth was driven by its dedicated employees and the dynamic sales force.

Completing the most successful year ever, Asian Alliance Life Insurance exceeded the benchmark on all performance standards, from New Business generation, Customer Retention, Average Premium Value, to profitability.

The recorded Annualised New Business Premium (ANBP) of Rs. 352 million shows a growth of 21% over the previous year. The Gross Written Premium of the Life Division exceeded Rs. 748 million recording a growth of 29%, which is a remarkable achievement. The key success factor for the growth was the outstanding rate of customer retention.

Asian Alliance now holds the most valuable Life customer base in the Insurance industry, averaging a Rs. 36,612/-Annual Premium per customer.