Mapfre Middlesea plc - Full-Year Results
On 9 March 2018, Mapfre Middlesea plc published its preliminary financial statements for the year ended 31 December 2017.
Performance Overview
During the period under review, post-tax profits of the non-life insurance business surged to €10.3 million from €2.60 million in the previous comparable period, largely reflecting much higher dividends received from Group companies which increased to €7.08 million in 2017 from €2.67 million in 2016. Mapfre Middlesea also noted that gross premiums written increased by 3.2% to €61.9 million. Technical results rebounded strongly due to an improved combined ratio following the correction of the motor tariff in 2017 whilst investment income, although marginally lower than previous years, was supported by improved property rental income and fair value movements particularly on property investments.
The company’s life insurance business, through its 50% stake in Mapfre MSV Life plc, also reported improved profitability during 2017, with post-tax profits climbing by 16.6% to €10 million (FY2016: €8.59 million). On a standalone basis, Mapfre MSV Life reported a turnover of €291.5 million which is 6.2% higher than the previous comparable period, reflecting strong demand across all products in particular for single premium savings contracts and life protection business. The results of Mapfre MSV Life were also supported by robust returns from equity and bond markets albeit net investment income dropped by almost 15% to €66.4 million from €78.1 million in 2016.
Overall, the Mapfre Middlesea Group reported a 52% increase in pre-tax profits to €17.7 million (FY2016: €11.6 million). After accounting for a tax charge of €4.19 million and minority interests of €5.01 million (relating to the 50% shareholding of Mapfre MSV Life plc owned by third parties), the Group’s net profit amounted to €8.51 million (FY2016: €4.63 million). This translates into an earnings per share figure of €0.093 (FY2016: €0.050).
The Statement of Financial Position shows a 9.6% increase in total assets to €2.21 billion whilst total liabilities expanded by 10.2% to €2.04 billion. Meanwhile, shareholders’ funds increased by 7% to €92.9 million. This translates into a net asset value per share of €1.010 (31 December 2016: €0.944).
Dividend
The Directors are recommending a final net dividend of €0.1054 per share compared to €0.0383 per share paid out for 2016. Shareholders as at the close of trading on Wednesday 25 April 2018 will be eligible to receive the dividend which is payable on Friday 18 May 2018 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Friday 20 April 2018.