On 28 February, Middlesea Insurance plc published its financial statements for the year ended 31 December 2011.
Following the acquisition of a majority stake by Mapfre Internacional in Middlesea Insurance, the two largest shareholders of Middlesea (Mapfre and Bank of Valletta plc) agreed on 29 July 2011 that the accounting method of the life insurance company MSV Life plc, which is equally owned by Middlesea and BOV, will be changed from that of an associate to that of a subsidiary of Middlesea.
As a result, the 2011 financial statements of Middlesea Insurance treat MSV Life plc as an associate until 29 July 2011 and as a subsidiary and therefore fully consolidated on a line-by-line basis after this date.
During 2011, total premiums written decreased by 9.2% to €31.8 million following the closure of the Gibraltar office as from the start of the year. The improved technical results following a better claims experience in 2011 was offset by lower investment income. As a result, the 2011 financial statements reveal that the Group’s profit before tax declined by 51.6% to €3.1 million (2010: €6.4 million).
The contribution from MSV Life plc as an associate until 29 July 2011 amounted to €1.6 million and during the remaining 5 months of the year, MSV made a contribution of €0.4 million. The lower profitability of the life insurance business was in part due to a decrease in turnover following lower sales of single premium products and also as a result of the volatile financial markets.
The balance sheet as at 31 December 2011 shows total assets of €1,233 million following the consolidation of the financial statements of MSV Life plc which contributed to the significant increase in the value of property and other investments. Group capital and reserves attributable to shareholders (excluding the non-controlling interest representing the share of MSV Life attributable to BOV) of €56.5 million translates into a net asset value per share of €0.614.
A final gross dividend of €0.01 per share is being recommended for approval at the upcoming Annual General Meeting being held on 20 April 2012. Those shareholders as at close of trading on 18 April 2012 will be entitled to the dividend which will then be paid on 20 May 2012.
A copy of the 2011 financial statements is available for download here.