Mapfre Middlesea plc - Closure of Progress Assicurazioni

On 11 February, Middlesea Insurance plc issued a Company Announcement stating that following a further detailed examination of the preliminary unaudited data for the fourth quarter of 2009, referred to in the previous announcement published on 11 January 2010 which had indicated a marked deterioration in claims experience during the period at Progress Assicurazioni Spa, revealed that the Italian subsidiary requires a further material injection of capital support in order to continue in business in conformity with Italian regulations. Accordingly the Board of Directors of Middlesea Insurance have concluded that a fresh capital injection, over and above the €45 million already injected in 2009, is not feasible.

As a result, Middlesea informed the Italian Insurance Regulators (ISVAP) that it wishes to cease the operations of its Italian subsidiary Progress Assicurazioni Spa. Consequently the Italian Regulator appointed a Provisional Administrator with immediate effect.

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