Eagle Insurance plc recorded a consolidated revenue of Rs 5,875 million in 2007, a 22% growth over the previous year.
- Records 22% growth in gross written premium
- Life and general businesses gross written premium grow by 20% and 27% respectively
- Bancassurance a key contributor to the topline.
Eagle Insurance plc recorded a consolidated revenue of Rs 5,875 million in 2007, a 22% growth over the previous year. The gross written premium of life and general businesses grew by 20% and 27% respectively. The company's profit after tax was Rs 527 million. Total net assets of Eagle grew by 16%, to over Rs 2 billion and the Company delivered a return on net assets (RONA) of 27%. A final dividend of Rs 3/- per share has been recommended by the Board bringing the total dividend for the year to Rs 5.50. An interim dividend of Rs 2.50 per share was paid in December 2007.
The growth in life gross written premium is a commendable performance achieved amidst difficult economic conditions while the growth of general insurance has been fuelled by an impressive 45% growth in the motor business.
The company's timely entry into the bancassurance market, leveraging Aviva's global expertise in this channel, has delivered excellent growth. This performance was further enhanced by the strategic partnership with Sampath Bank - the fourth largest private commercial bank in Sri Lanka. For the second consecutive year, the bancassurance channel remains a key contributor to Eagle's top line achievements.
Commenting on Eagle's performance the managing director Deepal Sooriyaarachchi says: "We are proud of our achievements in 2007. The strategic move we made in 2006 to shift our focus from being a niche player to a growth oriented company has delivered tangible results. My team and I face the new year with renewed confidence. We will continue to strive to reach even higher levels of performance in the year 2008. I am confident that we shall succeed".
Describing the company's partnership with Aviva as "dynamic and complementary", Sooriyaarachchi was of the opinion that, the unique expertise Aviva has acquired with its years of global experience, combined with Eagle's far-sightedness and stability, has provided the Company with the right combination to serve its customers better. "Being a part of the Aviva group not only reinforces our professionalism but also permeates a range of global best practices in many areas of work and infuses a very high degree of dynamism," he added.
The chairman of Eagle Insurance, Bert Paterson, commends Eagle on its performance, in his message to shareholders saying: "The Eagle team have once again delivered on their promises and validated the trust we have placed in them. As we move into another new year, I am confident that Eagle will continue to demonstrate the highest standards of governance and professionalism to deliver performance beyond the expectations of all its stakeholders." He also recognized the supportive role of local regulators, in setting higher standards for the industry.
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About Aviva
In February 2006, the Aviva Group acquired a majority stake in Eagle, with NDB bank remaining a significant shareholder. Aviva is the world's oldest insurance group, with a history dating back 300 years to 1696. Today it is the world's fifth-largest insurance group and the biggest in the UK. The Group has 59,000 employees world-wide, serving 40 million customers with £377 billion assets under management.