Mapfre Middlesea plc - Full-Year Results

On 23 March 2022, Mapfre Middlesea plc published its Annual Report for the financial year ended 31 December 2021.

Performance Overview

During 2021, pre-tax profits of the non-life insurance business declined by 36.4% to €4.06 million (2020: €6.39 million) reflecting the drop in the balance on the technical account for general business to €5.26 million compared to €7.93 million in 2020. The lower income from insurance activities resulted as the increase in claims incurred outweighed the growth in earned premiums. In this regard, the directors explained that while in 2020 claims were kept low due to the pandemic-induced lockdowns, these returned to their normal levels in 2021 as restrictions were relaxed.

Meanwhile, Mapfre MSV Life plc (“MSV”), which is jointly owned by Bank of Valletta plc (50%) and Mapfre Middlesea plc (50%), registered a 11.3% increase in pre-tax profits to €16.7 million compared to €15.0 million in 2020 as it benefitted from the strong economic recovery and the significant liquidity in the local market. In 2021, MSV received a capital injection of €40 million from its shareholders, which was required to increase its capital buffer due to the volatility in the markets. For the second consecutive year, MSV did not pay a dividend albeit the company noted that it is determined to resume dividend payments in the near future.

Overall, the Group reported a 3.8% drop in pre-tax profits to €20.4 million (2020: €21.2 million) which also includes a revaluation loss on property of €1.52 million related to the valuation of ‘Development House’. After accounting for a tax charge of €7.47 million and minority interests of €5.28 million (relating to the 50% shareholding of Mapfre MSV Life plc owned by Bank of Valletta plc), Mapfre Middlesea reported a net profit of €7.6 million which is 16.2% lower than the €9.12 million figure recorded in the 2020 financial year. The net profit for the year translates into a return on average equity of 7.2% compared to 9.6% recorded in 2020.

The Statement of Financial Position shows that total assets increased by 5.4% to €2.83 billion mostly due to higher intangible assets (+€14.9 million) and other investments (+€159.1 million). Similarly, total liabilities increased by 4.1% to €2.61 billion largely driven by the growth in insurance contracts and investment contracts with Discretionary Participation Feature (+€87.2 million). Shareholders’ funds surged by 10.4% to €111.0 million which, in turn, translates into a net asset value per share of €1.207 (31 December 2020: €1.094).


The Directors are recommending a net dividend of €0.026087, which is 25% lower than the dividend paid out for the 2020 financial year. This is payable on 24 May 2022 to all shareholders as at the close of trading on 25 March 2022 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 29 April 2022.


Commenting on the outlook, the Chairman explained that the Group is continuing to implement transformation through investments in IT systems and development of new products that should have significant long-term benefits. From a local perspective, the Chairman stated that the short-term effects of grey listing seem to have been weathered but highlighted the need for further effort for Malta to be removed from the grey list and to remain attractive as a place for doing business.