Mapfre Middlesea plc - Interim Results

Friday, July 19th, 2013

On 18 July, Middlesea Insurance plc published its interim results covering the six months ended 30 June 2013.

Performance Overview

Total income from the Group’s insurance activities dropped by 20.2% to €4.95 million mainly reflecting the 11.8% reduction in premium volumes following the termination of the agreement with a major agent which set up its own insurance company at the beginning of the year as well as increased competition including severe price undercutting. Nonetheless, the interim report noted that Middlesea Insurance acquired substantial new business and MSV Life plc registered a 23.6% increase in premiums written.

Returns from investments (allocated to the non-technical account) increased by 29.4% to €2.95 million reflecting the positive influence from the upward movements in both international and local markets.

Administrative expenses dropped by 7.6% to €1.3 million as a result of the Group’s focus on cost curtailment measures.

Overall, the Middlesea Group registered a 4.8% drop in pre-tax profits to €6.8 million. After accounting for a tax charge of €2.4 million and minority interest of €2 million (reflecting the 50% shareholding in MSV Life plc owned by third parties), the net profit attributable to shareholders amounted to €2.4 million representing a 12.9% drop from the previous comparable period. The Directors explained that the technical performance of Middlesea Insurance was affected by losses particularly in the motor class of business. Moreover, the profit generated by the Group during the period under review is mainly attributable to the life subsidiary, MSV Life plc, which increased its profitability.

The balance sheet as at 30 June 2013 shows a 2.6% increase in total assets to €1.37 billion compared to the figures as at 31 December 2012.  Total equity attributable to shareholders amounted to €68.6 million compared to €67.2 million as at 31 December 2012 giving a net asset value per share €0.75. Furthermore, the Middlesea Group is compliant with the regulatory solvency requirements both for the long-term and the general business.

Outlook

The Group looks ahead with cautious optimism whilst maintaining focus on improving return to shareholders through strategies aimed at enhancing technical performance and further cost curtailment in line with the current intense competitive environment.

Dividend

The directors did not propose the payment of an interim dividend.

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Middlesea Insurance plc – Interim Results for the half-year ended 30 June 2013

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