Mapfre Middlesea plc - Interim Results

On 28 July 2021, Mapfre Middlesea plc published its interim financial statements covering the six-month period ended 30 June 2021.

Performance Overview 

Total income from insurance activities increased by 2.8% to €12.2 million as the improvement in the ‘Long-Term Business Technical Account’ outweighed the weaker performance of the ‘General Business Technical Account’ (i.e. the non-life business). In this respect, Mapfre Middlesea explained that its long-term business delivered a stronger performance both as a result of significant increases in new business revenue and a positive investment return. On the other hand, the company noted that non-life business registered a satisfactory performance, however it could not match the pandemic driven exceptional results achieved last year.

During the first half of 2021, Mapfre Middlesea’s life business had a very positive period with premium levels returning to near all-time highs. Financial markets continued to recover and, as a result, the company reported a sound investment return contrary to the losses registered in H1 2020. In fact, the ‘With-Profits Fund’ increased by 1.6% as at the end of June 2021 and grew by 7% when compared to the prior year. Conversely, although the non-life business saw premiums recover from the subdued levels in H1 2020, the net combined ratio moved upwards reflecting the increased claim frequency in Motor Insurance.

Meanwhile, despite financial returns recorded an improvement over 2020, Mapfre MSV Life plc did not distribute a dividend in order to further strengthen its solvency position. In this respect, both Mapfre Middlesea plc and Bank of Valletta plc invested €20 million each in the share capital of Mapfre MSV Life in March 2021. Elsewhere, other income (including additional investment income) rose by 14.8% to €1.3 million compared to €1.14 million in H1 2020. On the other hand, total investment and administration expenses increased by 10.3% to €2.5 million.

Overall, Mapfre Middlesea reported a 2.5% increase in pre-tax profits to just under €11 million. After accounting for a tax charge of €3.4 million and minority interests of €2.7 million, the net profit attributable to shareholders amounted to €4.93 million compared to €4.86 million registered during the first six months of 2020. This translated into an annualised return on average equity of 10%.

The Statement of Financial Position shows that total assets grew by 3.2% to €2.77 billion when compared to the position as at 31 December 2020. Similarly, total liabilities rose by 2.3% to €2.56 billion whilst net assets jumped by 16.4% to €211.0 million. Accordingly, the net asset value per share increased to €1.1406 compared to €1.0087 as at the end of 2020.


In their commentary, the Directors noted that Mapfre Middlesea is looking at H2 2021 with cautious optimism in an environment wary of the evolving effects of the pandemic both on the local and global economies. The Directors also added that the focus remains on the Group’s strategic actions to meet its set Key Performance Indicators (‘KPIs’), continue delivering improved results to its shareholders whilst improving efficiency and client satisfaction. Moreover, the Board of Directors did not propose to pay an interim dividend for the half year.


Mapfre Middlesea plc – Half-Yearly Report for the six-month period ended 30 June 2021.