On 21 July, Mapfre Middlesea plc published its half-year financial statements covering the six months ended 30 June 2016.
During the period under review, gross written premiums of the Mapfre Middlesea Group advanced by 44.9% to €182.7 million as both the life business (+44.4% to €151.91 million) and the general business (+47.4% to €30.75 million) registered growth. Despite this growth, the Group’s total income from insurance activities decreased substantially to €5.7 million compared to €14.7 million in the previous comparable period.
The results for the comparable six months ended 30 June 2015 were exceptional given the one-off reinsurance cost adjustment and the returns on financial investments peaked in the first six months of 2015. Furthermore, the growth in the general business acquired by Mapfre Middlesea plc during the last twelve months led to an increased cost base whilst the respective pricing is still being adjusted. In addition, the recent poor performance in both local and foreign financial markets led to negative fair value movements during the six months ended 30 June 2016. Meanwhile, the results of the Company’s life assurance subsidiary – MSV Life plc – were partially compensated by the introduction of an annual management charge on assets under management.
Overall, Mapfre Middlesea suffered a 62.7% decline in pre-tax profits to €5.7 million (H1 2015: €15.2 million). After accounting for a tax charge of €1.6 million and minority interest of €1.8 million, the Group’s net profit for the period amounted to €2.2 million compared to €5.3 million registered during the first six months of 2015. This translates into an earnings per share of €0.0236 compared to €0.0573 in the first six months of 2015.
The Statement of Financial Position shows an 8.7% increase in total assets to €1.9 billion largely reflecting the 8.4% increase in other investments to €1.6 billion. Similarly, total liabilities also increased by 9.4% to €1.7 billion mainly reflecting the 10.6% increase in technical provisions on the Group’s insurance and investments contracts in line with the increased business activity. Overall, the Group’s equity attributable to shareholders grew by 1.4% to €82.4 million which translates into a net asset value per share of €0.8953.
In line with the Group’s dividend policy, the Board of Directors did not propose to pay an interim dividend.
Looking ahead, the Group explained that it will continue to take the necessary actions aimed at improving its technical results during the second half of the year.