On 17 May, Middlesea Insurance plc published its Interim Directors’ Statement explaining that during the first quarter of 2010 the operating profits of Middlesea Insurance and its associate Middlesea Valletta Life Assurance Co Ltd (MSV) have been satisfactory. In fact, the Group registered a profit before tax of €2.8 million for the period under review compared to a loss of €5.3 million registered in the first quarter of 2009. This turnaround was mainly due to the discontinuance of the operations of the Group’s Italian subsidiary Progress Assicurazioni SpA which had incurred €3 million in losses during the first quarter of last year. Also the Group benefited from an improvement in the technical results of Middlesea Insurance plc and the turnaround in the capital markets. MSV also had an encouraging start to the year as the Group accounted for 50% of the associate’s profits of €2 million registered in the first three months of 2010 (March 2009: loss of €3.3 million).
These profits strengthened the Group’s Balance Sheet. Following the implementation of measures with respect to its regulatory solvency position, agreed with the Regulator, Middlesea Insurance plc is now in conformity with its capital and solvency requirements.