Jan 15 (LBO) – Eagle Insurance notched up a 103 percent growth in net profits to Rs. 515 million for 2005, buoyed by rapid growth in its life and non-life businesses. Consolidated revenue growth for the insurance firm was up 15 percent from Rs. 3,728 million in 2004 to Rs. 4,277 million last year, the company said on Wednesday.
Growth was led by Eagle’s life business that recorded Gross Written Premiums of Rs.2,833 million, a 13 percent improvement on last year.
In 2005, the Life Fund grew 16 percent from Rs. 7,985 million to Rs. 9,238 million. Solvency margins for its life Fund are also a high 7.1 percent or Rs. 186 million above the five percent requirement.
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, the company said.
Benefits, losses and expenses of the Life Business however, increased by 63 percent due to policy maturities and gratuity claims.
The Life surplus transferred to the shareholders was also up by 50 percent to Rs. 375