Asset management helps boost Eagles first quarter profits
The Eagle Insurance Company Limited has increased its consolidated revenues 16% to Rs. 738.5 million during the first quarter of the current financial year ended March 31, 2003 and also boosted net profits 25% to Rs. 23.6 million during this period an interim report to shareholders reveals.
The companys asset management business had been the major contributor to the growth in first quarter profits.
The controlling equity of Eagle is now up for sale with Zurich NDB Finance Limited, the controlling shareholder, planning to divest. Among the companies looking at Eagle is a DFCC/Commercial Bank consortium as well as the Sri Lanka Insurance Corporation Limited now controlled by Distilleries/Stassen group of Mr. Harry Jayawardena.
During the quarter under review, Eagle has increased its group operating profit 14% to Rs. 33.2 million and its pre-tax profit 25% to Rs. 23.6 million which remained the bottom line as there was no tax liability.
Earnings per share had grown 25% to Rs. 1.18 from Rs. 0.94 a year earlier.
Eagle has an issued share capital of Rs. 200 million, general reserve of Rs. 532.8 million and retained earnings of Rs. 46.8 million in its books.
According to the interim statement the life business has contributed most to operating profits during the quarter under review with an earning of Rs. 14.2 million, down from Rs. 17.4 million a year earlier while non-life business had contributed Rs. 7.9 million, down from Rs. 10.8 million a year earlier. Asset management had done very well with an earning of Rs. 12.6 million, up from Rs. 1.6 million a year earlier.
Eagle had net assets per share of Rs. 38.98 as at March 31, 2003, up from Rs. 38.35 a year earlier. Its share traded at a high of Rs. 84 and a low of Rs. 63 during the quarter under review, up from a trading range of Rs. 68 to Rs. 40 a year earlier.
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