Mapfre Middlesea plc - Full-Year Results

Thursday, March 9th, 2017

On 8 March, Mapfre Middlesea plc published the Group’s preliminary financial statements for the year ended 31 December 2016.

Performance Overview

During the year under review, the post-tax profits of the non-life insurance business dropped by nearly 44% to €2.60 million from €4.64 million in the previous comparable period despite a notable increase in gross premium written. Technical results were subdued whilst investment income increased as a result of higher fair value movements particularly on the property portfolio of the Company. The preliminary results noted that the non-life insurance business benefitted from €2.67 million in dividends from Group companies. However, this was slightly less than the €2.84 million received in the previous financial year.

The life insurance business (through the 50% owned subsidiary Mapfre MSV Life plc) also reported reduced post-tax profits of €8.59 million compared to €10.1 million in FY2015 (€10.1 million). Although turnover increased by just over 22% to €274.5 million as a result of increased demand across all products, but especially in single premium savings contracts and life protection business, net investment income decreased by 14.4% to €78.1 million (FY2015: €91.2 million).

Overall, the Mapfre Middlesea Group reported a 34.7% drop in pre-tax profits to €11.6 million (FY2015: €17.9 million). After accounting for a tax charge of €2.72 million and minority interests of €4.30 million (relating to the 50% shareholding of MSV Life plc owned by third parties), the Group’s net profit amounted to €4.63 million representing a 32.1% drop from the previous year’s figure of €6.82 million. This translates into an earnings per share figure of €0.050 (FY2015: €0.074).

The statement of financial position shows a 10.9% increase in total assets to €2,020.0 million largely reflecting increases in investments (+€141.2 million), cash balances (+€33.3 million), intangible assets (+8.63 million) and investment property (+5.29 million). Similarly, total liabilities grew by 11.3% to €1,853.0 million mainly due to the 12.3% growth in insurance and investment contracts to €1,804.5 million. Overall, the total equity attributable to shareholders increased by 5.5% to €86.8 million representing a net asset value per share of €0.9438 (31 December 2015: €0.8945).

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 net dividend of €0.03826 per share – unchanged from the previous year. Shareholders as at the close of trading on Wednesday 26 April will be eligible to receive the dividend which is payable on Friday 19 May subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Friday 21 April.

Outlook

The Board of Directors explained that the Group continues to maintain a strong regulatory solvency position under the new Solvency II regime. Going forward, Mapfre Middlesea has a clear strategy to return to a strong technical profit and looks forward to 2017 with optimism.

Download

Mapfre Middlesea plc – Preliminary Statement of Annual Results for the financial year ended 31 December 2016.

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