Middlesea registers €17.98 million profit before tax for year ended December 2012

The Board of Middlesea Insurance plc today announced a €17.98 million group profit before tax for the year ended 2012.

The Board expressed its satisfaction for the excellent results obtained in 2012 especially when compared to last year's profit of €3.11 million.

The launch of a range of innovative and enhanced products, coupled with services offered pioneered by the company, have bolstered the image of Middlesea Insurance plc. and the brand name of Mapfre.

Middlesea Insurance plc. also said it acquired de-facto control over MSV Life p.l.c. ("MSV"), the group company specialising in life business, as from 29 July 2011. Accordingly, MSV became a subsidiary on that date.

Therefore, the year that ended 31 December 2012 was the first full year of consolidation of MSV Life p.l.c. within the group results of Middlesea Insurance plc.

Just days ago, developers of Tigné Point Midi plc. announced plans to dispose of their 100% shareholding in Tigné Mall Limited (TML), the owner and operator of The Point retail mall complex and its 253-undergound garage complex.

MSV Life plc had already indicated an interest to acquire 20 million ordinary shares in TML (35.5% of the resultant total issued share capital in TML) whilst Bank of Valletta will be underwriting the 14 million new share issue.

In its statement, Middlesea Insurance said that MSV was previously recognised as an associated undertaking, and on consolidation was accounted for using the equity method of accounting and therefore, measured in the balance sheet at an amount that reflected the share of net assets in the associated undertaking. Income, expenses and other movements in reserves are fully consolidated on a line-by-line basis as from 29 July 2011.

The operations of the standalone company registered improved technical results with a 10.7% increase in gross premiums written, which were buoyed by improved investment income, and higher dividends from group companies, the latter amounting to €1.22 million compared to €0.72 million in 2011.

The profit before tax generated by MSI for FY 2012, amounted to €3.26 million, compared to a profit of €1.75 million in FY 2011.

The group's results include the consolidated MSV results of €15.98 million (2011: €1.64 million as an associate (up to 29 July 2011) and consolidated results before tax of €0.4 million).

MSV reported a decrease in turnover of €87.3 million compared to €128.0 million in 2011 as a result of lower demand for single premium business. Despite subdued customer confidence, new sales of the protection and regular savings policies held up well compared with previous year figures.

The upturn in equity and bond markets allowed net investment income to increase substantially from €8.1 million in 2011 to €95.4 million in 2012.

During the year the group consolidated its strong balance sheet, increasing its shareholders' equity to €67.2 million from €56.5m in 2010.

Middlesea Insurance p.l.c. improved its regulatory solvency position on its general business as at 31 December 2012 to 603% (2011:386%), when compared to the minimum regulatory requirement of 150%.

The Board of Directors recommends, for the approval of the AGM, the payment of a final net dividend of €1,745,000 (2011 - €598,000) equivalent to a gross dividend of €0.025 per share (2011 - €0.010).

The final dividend, if approved at the AGM, will be paid on the 17 May 2013 to the shareholders on the company's share register at the Central Securities Depository of the Malta Stock Exchange at the close of business as at the 22 April 2013.