On 12 August, Middlesea Insurance plc published its 2010 interim results. Middlesea explained that during the first half of 2010 the Group re-focussed its strategy towards the local business following its decision to place the Italian subsidiary Progress Assicurazioni SpA into administration. As a result, the Middlesea Group has restated the comparative financial results for 2009.
During the first six months of 2010, the Middlesea Group registered a profit before tax of €3.4 million, a significant improvement when compared to the €0.9 million registered in the same period in 2009. The Group recorded a profit after tax figure of €3.2 million when compared to a loss after tax of €19 million incurred in June 2009 which included the €19.4 million impairment on the investment in the Italian insurance company.
Meanwhile the Group’s technical income for the period amounted to €1.33 million, 13% lower than the €1.53 million registered in June 2009. In fact the Group’s combined operational ratio deteriorated to 97.40% from 94.68% in June 2009 (restated). During the period under review, Middlesea stated that it registered an increase in premiums written of 3.2% compared to the first half of last year.
Middlesea Valletta Life Assurance Co Ltd contributed an improved result of €2.6 million (after tax) compared to a loss of €0.3 million in the first six months of 2009. This associate company saw a strong performance both in volume of premium written and its profitability. Business written rose to €74.2 million in June 2010 from €50.11 million in June 2009 whilst its investment portfolio recovered significantly reflecting the positive sentiment experienced in the financial markets.
Moreover, the Group’s subsidiary International Insurance Management Services (IIMS) contributed €0.26 million to the pre-tax profit of the Group, a slight improvement compared to contribution in the first half of 2009. In line with the restructuring strategy of the Group, as from July 2010 IIMS’s operations have been re-focused solely on its non-Group clients.
The Middlesea Group explained that the first six months of the year yielded improved results and it is looking forward to the next half of the year with cautious optimism as it seeks to consolidate further as the leading provider in the local insurance market.
Middlesea’s total equity as at 30 June 2010 amounted to €51.42 million which translates into a net asset value per share of €0.559.
Similar to last year, the Directors did not declare an interim dividend.
Download a copy of the Middlesea Insurance 2010 Half-Year Results.