(Incorporated in the Republic of Mauritius - Reg. No. 2277)
	Profit and Dividend Announcement for the year ended 31 December 2005
	Financial Results
	The audited results for the year ended 31 December 2005 are as follows:-
	INCOME STATEMENT	THE  GROUP				THE  COMPANY					STATEMENT OF CHANGE IN EQUITY
															Investment
		Year ended 31 December				Year ended 31 December					THE GROUP	Share	Share	Revaluation	Revaluation	Retained	Total
		2005		2004		2005		2004				Capital	Premium	Reserve	Reserve	Profits
		Rs 000		Rs 000		Rs 000		Rs 000				Rs 000	Rs 000	Rs 000	Rs000	Rs 000	Rs 000
	Turnover	756,729		616,975		484,251		453,446			At 1 January 2004	26,667	21,404	20,216	1,153	114,833	184,273
											Revaluation surplus realised	-	-	-	(359)	-	(359)
	Net Earned Premiums	250,268		237,771		250,268		237,771			Change in fair value of investment	-	-	-	4,851	-	4,851
											Profit attributable to shareholders	-	-	-	-	36,227	36,227
	Gross Lease Rental Income	83,990		63,481		-		-			Dividend paid	-	-	-	-	(12,667)	(12,667)
											At 31 December 2004	26,667	21,404	20,216	5,645	138,393	212,325
	Profit before Taxation	57,287		57,688		36,881		41,668
	Taxation	(7,513)		(10,440)		(7,147)		(7,806)			At 1 January 2005	26,667	21,404	20,216	5,645	138,393	212,325
	Minority Interest	(6,964)		(6,559)		-		-			Revaluation surplus realised	-	-	-	(4,093)	-	(4,093)
		42,810		40,689		29,734		33,862			Change in fair value of investment	-	-	-	6,198	-	6,198
	Less transfer to statutory reserve fund	(5,237)		(4,462)		(5,237)		(4,462)			Profit attributable to shareholders	-	-	-	-	37,573	37,573
	Profit attributable to Shareholders	37,573		36,227		24,497		29,400			Dividend paid	-	-	-	-	(12,667)	(12,667)
											At 31 December 2005	26,667	21,404	20,216	7,750	163,299	239,336
	Earnings per share (Rs )	16.05		15.26		11.15		12.70
	Number of shares in issue	2,666,666		2,666,666		2,666,666		2,666,666							Investment
											THE COMPANY	Share	Share	Revaluation	Revaluation	Retained	Total
												Capital	Premium	Reserve	Reserve	Profits
												Rs 000	Rs 000	Rs 000	Rs000	Rs 000	Rs 000
	INCOME STATEMENT - LIFE BUSINESS					Year ended 31 December
						2005		2004			At 1 January 2004	26,667	21,404	20,216	1,153	108,776	178,216
						Rs 000		Rs 000			Revaluation surplus realised	-	-	-	(359)	-	(359)
											Change in fair value of investment	-	-	-	4,851	-	4,851
	Gross Premium					84,207		66,026			Profit attributable to shareholders	-	-	-	-	29,400	29,400
	Less Reinsurance Premium					(8,060)		(6,998)			Dividend paid	-	-	-	-	(12,667)	(12,667)
	Net Premium					76,147		59,028			At 31 December 2004	26,667	21,404	20,216	5,645	125,509	199,441
	Investment Income					14,424		10,662
	Other Income					1,732		1,968			At 1 January 2005	26,667	21,404	20,216	5,645	125,509	199,441
						92,303		71,658			Revaluation surplus realised	-	-	-	(4,093)	-	(4,093)
	Benefits and Expenses										Change in fair value of investment	-	-	-	6,198	-	6,198
	Benefits and claims					(31,436)		(21,303)			Profit attributable to shareholders	-	-	-	-	24,497	24,497
	Commission and Administrative expenses					(18,389)		(16,211)			Dividend paid	-	-	-	-	(12,667)	(12,667)
	Transfer to Life Insurance Fund					42,478		34,144			At 31 December 2005	26,667	21,404	20,216	7,750	137,339	213,376
										COMMENTS The financial statements of the Company and Group for the year ended 31 December 2005 have been prepared under the historical cost convention as modified by the revaluation of land and building and certain available-for-sale investments and in accordance with International Financial Reporting Standards. Group turnover increased by 23% over last year reaching Rs757M representing an increase of 7% in our insurance activities and 67% for our leasing subsidiary. Group profit before tax was similar to last year at Rs57M.  There has been a deterioration in the motor business which was mainly due to “constat à l’amiable” but all other departments have performed reasonably well.  Attributable earnings increased by 4% to Rs38M posting an earnings per share of Rs16.05 against Rs15.26 for the same period last year. Net asset value per share was Rs102.43 at 31 December 2005 compared to Rs90.33 at the same date last year.  PROSPECTS The first quarter of 2006 has started well and in the short term market conditions for the insurance industry are expected to remain stable.  Our key focus will be the enhancement of profitability while continuing to grow and our leasing subsidiary should continue to show appreciable results. DIVIDENDS The directors have declared a dividend of Rs2.50 bringing the total dividend to Rs4.75 per share which is similar to last year.                                                                         DECLARATION OF FINAL DIVIDEND Notice is hereby given that the company has declared a final dividend of Rs2.50 per share to shareholders registered at the close of business of 19 April 2006, in respect of its financial year 31 December 2005.  The Dividend will be paid on or about 28 April 2006. The shares of the Company will be traded cum-dividend up to the market day of  14 April 2006 and ex-dividend on 17 April 2006. By Order of the Board S. P. Rey Secretary  27 March 2006 This financial report is issued pursuant to Listing Rule 12.20. The Board of Directors of Mauritian Eagle Insurance Company Ltd accepts full responsibility for the accuracy of the information contained in this report. Copies of this financial report are available to the public, free of charge, at the registered office of the Company.
	BALANCE SHEET	THE  GROUP				THE  COMPANY
		Year ended 31 December				Year ended 31 December
		2005		2004		2005		2004
		Rs 000		Rs 000		Rs 000		Rs 000
	Shareholders' Equity	239,336		212,325		213,376		199,441
	Statutory Reserve Fund	33,803		28,566		33,803		28,566
	Shareholders' Fund	273,139		240,891		247,179		228,007
	Insurance Funds	236,555		203,619		236,555		203,619
	Minority Interest	68,344		41,779		-		-
	Long Term Liabilities	746,654		543,483		139		-
	TOTAL CAPITAL EMPLOYED	1,324,692		1,029,772		483,873		431,626
	Non-Current Assets
	Intangible Assets	1,214		-		969		-
	Property, Plant and Equipment	172,465		68,089		64,740		66,404
	Investments	253,284		180,702		258,950		178,592
	Finance Lease Receivable	748,627		504,853		-		-
	Deferred Tax	65		576		-		576
		1,175,655		754,220		324,659		245,572
	Current Assets	629,116		549,481		305,953		313,470
	TOTAL ASSETS	1,804,771		1,303,701		630,612		559,042
	Interest Free Liabilities
	Current Liabilities	(480,079)		(273,929)		(146,739)		(127,416)
	EMPLOYMENT OF CAPITAL	1,324,692		1,029,772		483,873		431,626
	Net worth per share	102.43		90.33		92.69		85.50
	CASH FLOW STATEMENT	THE  GROUP				THE  COMPANY
		Year ended 31 December				Year ended 31 December
		2005		2004		2005		2004
		Rs 000		Rs 000		Rs 000		Rs 000
	Net cash generated from operations	51,509		19,349		11,843		1,425
	Net cash generated from/(used in) investing activities	(249,786)		60,321		(22,963)		21,613
	Net cash generated from/(used in) financing activities	207,468		(27,367)		(12,667)		(12,667)
	Net increase/(decrease) in  Cash & Cash equivalents	9,191		52,303		(23,787)		10,371
	Cash & Cash equivalents at 01 January	134,532		82,229		96,311		85,940
	Cash & Cash equivalents at 31 December	143,723		134,532		72,524		96,311
																		0.42