Soaring Eagle

Feb. 01 (LBO) – Aviva, UK's largest insurance giant's, picked up controlling stake in Eagle Insurance Ltd for Â£15 million or Rs. 2.7 billion, the firm said Wednesday. At present ranked the world's sixth largest insurance group based on gross worldwide premiums, Aviva said 51 percent also came with a partnership with Eagle’s parent NDB Bank, to offer bancassurance products.

Aviva and NDB will be the principal shareholders of Eagle, the statement said.

The controlling stake is believed to have been sold at Rs. 180 per share with NDB Bank pocketing a capital gain of about Rs. 970 million.

Eagle is a composite insurer, with life, general insurance and asset management operations.

Eagle is Sri Lanka’s third-largest insurer with a 20 percent share of the local life market on a gross written premium basis, Aviva said.

In 2004 Eagle had total gross written premiums of Â£19.6 million or Rs. 3.5 billion.

The life business accounts for 70 percent of Eagle's premium income, derived predominantly via direct sales.

General-insurance business accounts for 30 percent of premium income, and is in line with Aviva's strategy of focusin