Mapfre Middlesea plc - Interim Results

On 24 July, Middlesea Insurance plc published its financial statements for the six months ended 30 June 2012. The results for the period under review are not directly comparable with those for the first six months of 2011 as the Middlesea Group now consolidates the results of its associate, MSV Life plc, on a line-by-line basis with those of the holding company following the acquisition of a majority stake in Middlesea Insurance plc by Mapfre Internacional S.A. in the second half of 2011 and the shareholders’ agreement between Mapfre and Bank of Valletta plc (as the holder of the remaining 50% stake in MSV Life plc) .

During the six months ended 30 June 2012, the Middlesea Group generated a net profit attributable to shareholders (excluding the 50% interest in MSV Life plc owned by BOV) of €2.79 million compared with a profit of €1.12 million in the first half of 2011. The Directors explained that the increase in profitability was the result of improvements in the pure technical operations of Middlesea Insurance enhanced further by the positive performance of the Group’s investment portfolio, particularly that of the associate company MSV Life plc.

The interim report revealed that general business gross premiums written increased by 7.3% to €18.36 million. The Directors noted that during the period under review, Middlesea Insurance launched a number of new products including roadside and home assistance (through its newly formed associate company Middlesea Assist) and Wedding Policies. Meanwhile, the long-term gross premiums written, dropped by 36% to €45.5 million mainly due to the current economic environment which continues to impinge on MSV Life plc’s premium volumes particularly those related to capital intensive products.

On the balance sheet side, total equity attributable to the shareholders amounted to €60.2 million as at 30 June 2012 compared to €56.5 million as at 31 December 2011. Moreover, the Directors explained that the improved results also led to a better solvency position of the Group which is now compliant with the regulatory solvency requirements both for the long-term and general business.

In conclusion, the Directors stated that the Group looks forward with cautious optimism to the second half of 2012. Middlesea aims to maintain its focus on improving shareholder return through enhanced technical performance and cost curtailment in the current bleak economic and financial environment.

 

Download a copy of the Middlesea Insurance 2012 Interim Results