Eagle Insurance nets Rs. 4,813 million consolidated revenue

Eagle Insurance Company Limited recorded a consolidated revenue of Rs. 4,813 million for the year ended December 31, 2006, a 13% growth over the previous year. The total gross written premium of Life and General insurance business increased 14% compared to the previous year.

The profit after tax of Rs. 523 million was up 2% compared to 2005. However, 2005 included the benefit of high levels of realised capital gains on equity portfolios achieved during the pre-election period in 2005- Rs. 124 million. When adjusted the underlying increase in profit after tax is 34%.

The recorded profit in 2006 is in line with the Company's profit expectation for the year and is a reflection of the effective execution of planned strategies in the areas of business development, revenue expansion, investment and operational efficiency.

The Company was able to maintain its track record in delivering impressive shareholder returns with a Return on Net Assets (RONA) of 31% for the year 2006. Eagle's balance sheet was further strengthened, with net assets recording a growth of 19% over the previous year.

A final dividend of Rs. 7.00 per share for the year 2006, has been recommended by the Board of Directors for approval by the shareholders at the Annual General Meeting of the company on March 30. An interim dividend of Rs. 2.50 per share was paid in December 2006.