Mapfre Middlesea plc - Interim Results

On 20 July, Mapfre Middlesea plc published its interim financial statements covering the six months ended 30 June 2018.

Performance Overview 

During the period under review, gross written premiums of the Mapfre Middlesea Group increased by 6.8% to €210.69 million as both the life business (+5.6% to €173.85 million) and the general business (+12.6% to €36.84 million) registered growth.

Mapfre Middlesea explained that its non-life business registered a marked improvement following last year’s upward revision in its motor tariffs as well as through organic growth. Nonetheless, the non-life business remains susceptible to the volatility caused by large losses. In this respect, Mapfre Middlesea noted that it has taken measures to protect itself from such events.

Meanwhile, the life subsidiary, Mapfre MSV Life, continue to have stable results as the annual management fee generated from assets under management offsets the impact of financial market fluctuations. Mapfre Middlesea also reported that the single premium business remained the driver of growth in the life business with both existing customers reinvesting matured policies and attracting new client investments. The announcement also noted that unrealised capital losses incurred on the equities portfolio led to a lower yield during the first half of 2018.

As a result, the Group’s total income from insurance activities surged by 31.4% to €9.75 million compared to €7.42 million in the previous comparable period. Pre-tax profits improved by 28.5% to just over €9 million (H1 2017: €7.02 million). After accounting for a tax charge of €2.83 million and minority interests of €2.43 million, Mapfre Middlesea’s net profit attributable to shareholders for the period under review amounted to €3.77 million compared to €3.24 million registered during the first six months of 2017. This translates into an earnings per share of €0.041 compared to €0.0352 in the first six months of 2017.

The Statement of Financial Position shows a 3.8% increase in total assets to almost €2.3 billion when compared to the position as at 31 December 2017, whilst total liabilities grew by 4.5% to €2.13 billion. The Group’s equity attributable to shareholders contracted by 5% to €87.4 million (as the dividend paid out in respect of the previous financial year offset the profit registered during the period under review) which translates into a net asset value per share of €0.95 (Dec 2017: €1.01).

Dividend

In line with the Group’s dividend policy, the Board of Directors did not propose the payment of an interim dividend.

Outlook

Looking ahead, Mapfre Middlesea explained that it will continue focusing on its strategic actions to continue delivering improved results to its shareholders by improving efficiency and client satisfaction in line with its mission of being the most trusted insurer.

Download

Mapfre Middlesea plc – Half-Year Report for the six months ended 30 June 2018.