Mapfre Middlesea plc - Interim Results

On 29 July 2024, Mapfre Middlesea plc published its interim financial statements covering the six-month period ended 30 June 2024.

Mapfre Middlesea explained that it adopted IFRS 17 insurance contracts approved models resulting in the restatement of the 2023 financial statements.

Net insurance and investment results amounted to €14.1 million compared to a restated figure of €11.1 million in the first half of 2023. The Company’s non-life business saw further improvement from the previous year. Furthermore, technical performance improved particularly in the motor portfolio coupled with a contained claim frequency and claim cost average in line with last year. Nonetheless, investment income was lower than in the previous year, which had been favourably impacted by a higher increase in equity prices.

The Group generated pre-tax profits of €12.2 million compared to a restated figure of €9.70 million in the corresponding period last year. After accounting for a tax charge of €3.35 million and non-controlling interests of €2.80 million, the net profit for the period attributable to shareholders amounted to €6.03 million (H1 2023: €4.65 million) which translates to an annualised return on average shareholders’ funds of 14.3% (H1 2023: 11.8%).

The Statement of Financial Position as at 30 June 2024, compared to 31 December 2023 shows that total assets remained relatively unchanged at €2.42 billion. Similarly, total liabilities were also stable at €2.25 billion, whilst total equity amounted to €174.2 million. After accounting for non-controlling interests of €84.5 million, equity attributable to shareholders amounted to €89.7 million which translates into a net asset value per share of €0.975 (31 December 2023: €0.958)

Outlook

In their commentary, the Directors explained that they look at the second half of 2024 with cautious optimism, as the Group heads towards setting out its strategy for the upcoming three-year cycle with challenging key performance indicators. The strategy will aim to improve client experience through quality of service and operational efficiency whilst maintaining an adequate return to shareholders.