Middlesea registers €7.17 million profit for the first six months of 2012

The consolidated Middlesea Group results for the first six months of 2012 show a profit before tax of €7.17 million, compared to €1.58 million registered during the comparative period last year.

The June 2012 results consolidate MSV Life plc results on a line-by-line basis whereas the 2011 comparative only consolidates the Group's share of the associate's profit after tax.

The profit after tax allocated to shareholders amounted to €2.79 million as compared to €1.12 million in 2011. The rise in profit levels is a result of an improvement in the pure technical insurance operations in the Holding Company which was further enhanced by the positive performance of the Group's investment portfolio.

Financial market movements had a favourable impact on investment portfolio returns, particularly those relating to MSV Life plc.

The downward trend on the Malta Stock Exchange was mitigated by an improved sentiment on foreign financial markets, which however were indicating a downward trend in the last two months as a result of uncertainties shrouding the Eurozone's economic situation.

Satisfactory improvement has been registered by Middlesea Insurance plc as a stand-alone company both in the technical income and gross premiums written. General Business Gross Premium written increased by 7.3% from €17.11 million in 2011 to €18.36 million as at 30 June 2012.

The Group's solvency has seen positive developments as a result of the improved results of the Company and in the light of a better solvency position of MSV Life plc. Total Equity of the Group attributable to shareholders amounted to €60.23 million as at 30 June 2012, up from €56.51 million at 31 December 2011. The Board of Directors do not propose to pay an interim dividend for the half year ended 30 June 2012.

During the first six months of 2012, Middlesea Insurance plc launched a number of new products, including Assistance, whereby the company offers Roadside and Home assistance through its associate company Middlesea Assist, Extended Warranty, GAP and Wedding Policies. These products came at a time when the Company was changing its corporate identity, a project designed to embrace Middlesea's evolution as a member of the Mapfre Group through a rebranding exercise which took place in May. Meanwhile, after just six months of operation, Middlesea Assist is already providing a high value-added service to Middlesea's policyholders, who have consistently praised the efficiency of the roadside assistance services provided by the company.

Commenting about Middlesea Group's half-yearly results, President and Chief Executive Officer Alfredo Munoz stated that whilst registering satisfactory results both in the technical and non-technical accounts, the Group "looks forward with cautious optimism" to the second half of 2012. Elaborating on Middlesea's vision for the future, he said that: 'Focus will remain on improving return to shareholders through enhanced technical performance and cost containment in the current bleak economic and financial environment. The Group will continue in its efforts to offer a wider range of products and services tailored for the changing needs of its wide client base on the strength of its experience in the highly competitive local insurance market".