On 3 March Middlesea Insurance plc issued an announcement making reference to the Interim Directors’ Statement published on 5 November 2008. In the Interim Statement it was announced that the unprecedented volatility in the international and local capital markets presented challenges to the Group, and that in the absence of a material change in market sentiment, it was expected that the positive technical performance would be outweighed by the negative investment results for the 2008 financial year.
The Directors confirmed on 3 March that the continued negative sentiment and volatility in the capital markets throughout 2008 and beyond has adversely impacted the investment result of the Group. Moreover, the Directors also revealed a material deterioration in the technical performance of a certain class of business during the last quarter of 2008.
As a result, the Board of Directors expect that the consolidated financial results for 2008, which are still subject to finalisation and audit, to be below expectations.