Mapfre Middlesea plc - Full-Year Results

Wednesday, March 2nd, 2016

On 2 March, Mapfre Middlesea plc published the Group’s preliminary financial statements for the year ended 31 December 2015.

Performance Overview

During the year under review, the non-life insurance business registered a 20.5% decline in pre-tax profits to €5.07 million despite a 38.3% increase in premium volumes following the acquisition of the insurance portfolio from Allcare Insurance Limited as well as an increase in investment income. The preliminary results also noted that the non-life insurance business benefitted from €2.84 million in dividends from Group companies. However, this was less than the €3.6 million received in the previous financial year.

On the other hand, the life insurance business (through the 50% owned subsidiary MSV Life plc) reported an improved pre-tax profit of €15.6 million compared to €14.3 million in the previous year. This largely reflects the substantial increase in turnover to €224.5 million compared to €156.1 million in 2014 given increased demand across all products especially those related to the life protection business and the single premium savings contracts. Additionally, the upturn in equity and bond markets during 2015 led to a net investment income figure of €91.2 million albeit below the €119.4 million registered in 2014.

Overall, the Mapfre Middlesea Group reported a 3% increase in pre-tax profits to €17.9 million. After accounting for a tax charge of just under €6 million and minority interest of €5 million (relating to the 50% shareholding of MSV Life plc owned by third parties), the Group’s net profit amounted to €6.8 million representing a 4.8% drop from the previous year’s figure. This translates into an earnings per share figure of €0.074 (2014: €0.078).

The statement of financial position shows a 12% increase in total assets to €1,821.6 million largely reflecting the 13.6% increase in other investments to €1,540.3 million. Similarly, total liabilities also grew by 13% to €1,664.2 million mainly due to the 12.9% growth in insurance and investment contracts to €1,622 million. Overall, the total equity attributable to shareholders increased by 2.7% to €82.3 million representing a net asset value per share of €0.89 (2014: €0.87).

The preliminary statement of results also noted that the Group’s solvency position on its general business stands at 284% compared to a required regulatory minimum of 150%.

Dividend   

The Directors recommended a final gross dividend of €0.05605 per share representing a 9.3% increase over the previous year’s gross dividend. However, given the higher tax charge incurred during the year under review, the net dividend remains unchanged at €0.03826 per share. Shareholders as at the close of trading on Wednesday 27 April will be eligible to receive this dividend on 22 May 2016 subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on Friday 22 April.

Outlook

The Board of Directors explained that on the back of the strength of the Mapfre brand name and the growing portfolio of the Mapfre Middlesea Group, they look forward to 2016 with optimism although they remain aware of the challenges in the market in which the Group operates.

Download

Mapfre Middlesea plc – Preliminary Statement of Annual Results for the financial year ended 31 December 2015.

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