On 24 July, Mapfre Middlesea plc published its interim financial statements covering the six months ended 30 June 2017.
During the period under review, gross written premiums of the Mapfre Middlesea Group increased by 8% to €197.3 million as both the life business (+8.3% to €164.6 million) and the general business (+6.4% to €32.7 million) registered growth.
Mapfre Middlesea explained that its non-life business registered a marked recovery as actions taken by the Company to address the price deficiency in the motor line of business are showing progress in returning this particular business segment to a profitable position again. Furthermore, Mapfre Middlesea’s results were also positively impacted by an increase in investment income derived particularly from the property investment held by the Company.
With respect to life business, the Company noted that its 50%-owned subsidiary – Mapfre MSV Life plc – continues to generate positive and stable results reflecting the annual management charge on assets under management introduced at the beginning of FY2016 which reduces the impact of fluctuations in results associated with movements in financial markets.
As a result, the Group’s total income from insurance activities surged by 29% to €7.42 million compared to €5.75 million in the previous comparable period. Pre-tax profits improved by nearly 24% to €7.02 million (H1 2016: €5.67 million). After accounting for a tax charge of €1.4 million and minority interests of €2.38 million, Mapfre Middlesea’s net profit for the period amounted to €3.24 million compared to €2.17 million registered during the first six months of 2016. This translates into an earnings per share of €0.0352 compared to €0.0236 in the first six months of 2016.
The Statement of Financial Position shows a 4.8% increase in total assets to €2.12 billion when compared to the position as at 31 December 2016, whilst total liabilities grew by 5.8% to €1.96 billion. The Group’s equity attributable to shareholders expanded by 1.4% to €88.1 million which translates into a net asset value per share of €0.9574.
In line with the Group’s dividend policy, the Board of Directors did not propose the payment of an interim dividend.
Looking ahead, Mapfre Middlesea explained that it will continue to take the necessary actions aimed at reaching pre-established targets both in delivering improved results and improving efficiency and client satisfaction.