Mapfre Middlesea plc - Interim Results

On 12 July, Mapfre Middlesea plc published its interim financial statements covering the six months ended 30 June 2019.

Performance Overview 

During the period under review, gross written premiums of the Mapfre Middlesea Group decreased by 4.6% to €200.98 million as the 6.1% increase in general business premiums to €36.84 million was offset by the 6.9% decline in the life business to €161.9 million.

Mapfre Middlesea explained that its non-life business registered yet another marked improvement through organic growth and notwithstanding tough market competition. Nonetheless, the non-life business remains susceptible to the volatility caused by large event losses. 

Meanwhile, the life subsidiary, Mapfre MSV Life, continues to have stable results as the annual management fee generated from assets under management offsets the impact of financial market fluctuations. Mapfre Middlesea also reported that although the single premium business remained the driver of growth in the life business and reinvestment rates remained at a satisfactory level, new business sales in the single premium business declined during the first six months of 2019. The announcement also noted that unrealised capital losses incurred in 2018 have been recovered during the first half of 2019 in line with the upswing across financial markets.

As a result, the Group’s total income from insurance activities increased by 9.9% to €10.72 million compared to €9.75 million in the previous comparable period. Pre-tax profits improved by 9% to €9.83 million (H1 2018: €9.02 million). After accounting for a tax charge of €3.05 million and minority interests of €2.47 million, Mapfre Middlesea’s net profit attributable to shareholders for the period under review amounted to €4.31 million compared to €3.77 million registered during the first six months of 2018. This translates into an earnings per share of €0.0469 compared to €0.041 in the first six months of 2018.

The Statement of Financial Position shows a 10.2% increase in total assets to €2.53 billion when compared to the position as at 31 December 2018, whilst total liabilities grew by 10.7% to €2.38 billion. The Group’s equity attributable to shareholders contracted by 9.4% to €83.02 million (as the dividend paid out in respect of the previous financial year offset the profit registered during the period under review) which translates into a net asset value per share of €0.9024 (Dec 2018: €0.996).

Dividend

In line with the Group’s dividend policy, the Board of Directors did not propose the payment of an interim dividend.

Outlook

Looking ahead, Mapfre Middlesea explained that it will continue focusing on its strategic actions to continue delivering improved results to its shareholders by improving efficiency and client satisfaction in line with its mission of being the most trusted insurer.

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Mapfre Middlesea plc – Half-Year Report for the six months ended 30 June 2019.