Mapfre Middlesea plc - Interim Results

Friday, July 18th, 2014

On 17 July, Middlesea Insurance plc published its interim results covering the six months ended 30 June 2014.

Performance Overview

Middlesea reported that general business premiums improved by 12.9% from €16.06 million in the first six months of 2013 to €18.13 million in the first half of 2014. Similarly, long-term gross premiums written by the Group increased by 18.1% to €66.24 million, compared to €56.11 million generated during the same period of last year.

Total income from insurance activities climbed by 22.4% to €6 million. Moreover, the returns from the investment portfolio also improved by 11.1% to €2.98 million. Middlesea explained that this resulted from a continued recovery of the major international stock exchanges which particularly boosted the investment returns of MSV Life plc. Meanwhile, due to the exposure of equities in the local financial services sector, the investment portfolio of Middlesea Insurance plc registered losses in line with the decline of local banking share prices.

The Middlesea Group contained its administrative costs, which edged marginally lower over the levels expensed in the comparative period of 2013, at €1.3 million.

Pre-tax profits of the Middlesea Group during the first half of 2014 climbed by 20% to €8.2 million mainly arising from the improved performance of MSV Life plc despite the fierce competition in this sector. After accounting for a tax charge of €2.3 million and minority interests of €2.8 million, net profits attributable to shareholders of the Group amounted to €3.1 million.

Total assets of the Group grew by 10.7% to €1.5 billion, backed by total equity attributable to shareholders of €72.9 million as at end of June 2014, an increase of 6.3% over the same comparative period in 2013. Solvency regulatory requirements were comfortably met, despite the decrease in the ratio, which at 30 June 2014 stood at 474% against the 515% on 31 December 2013.

Outlook

The Middlesea Group stated that it 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 as at 30 June 2014

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