The Group’s results include the consolidated MSV Life results of €15.48 million (2012: €15.98 million). MSV reported a turnover of €111.32 million compared to €87.31 million in 2012 as a result of increases across various classes of protection business and stronger single premium business. The resilience and upturn in equity and bond markets kept revenue patterns similar to 2012 with net investment income increasing from €95.44 million in 2012 to €98.19 million in 2013. In the previous year there was a significant one-off deferred tax gain whereby all unutilised tax amounts available for relief against future taxable income in terms of the applicable law were recognised. In 2013, the MSV Group recorded an after-tax profit of €9.85 million for the year.
Financial Year 2013 was a satisfactory year for the stand-alone Holding Company, Middlesea Insurance. Gross profit before tax amounting to €5.90 million includes dividends from subsidiary companies of €4.09 million. Pure technical results on local business (including Group Life) improved by 1.71% and stand at €7.07 million compared to €6.95 million in the previous year. Investment income reduced due to lower fair value movement particularly on the property portfolio and negatively influenced by currency movements.
The Board expressed satisfaction with the results, which confirm that an 11.2% reduction in gross premiums written by the parent company, following the termination of one of the main agency agreements (which in 2012 underwrote 18.4% of MSI’s portfolio) in the beginning of the year, did not have a big impact on the Group’s profitability. In Financial Year 2012, Middlesea Group had registered a profit of €18.01 million
During the year the Company consolidated its strong balance sheet, increasing its Shareholders’ equity to €60.84 million, still maintaining a strong regulatory solvency position as at 31 December 2013 of 515% on its general business, when compared to the minimum regulatory requirement of 150%.
The Board stated that the launch of a range of innovative and enhanced products coupled by services offered, pioneered by the Company, have bolstered the image of Middlesea Insurance p.l.c. and the brand name of MAPFRE. The Board looks forward with optimism to another challenging year for the Group.
A gross dividend in respect of year ended 31 December 2013 of €0.045 per share amounting to a total dividend of €4,140,222 (2012: €2,300,000) is to be proposed by the directors at the forthcoming annual general meeting. This is equivalent to a net dividend of €0.03826 per share amounting to a total net dividend of €3,520,000 (2012: €1,745,000)
Middlesea Insurance p.l.c. (C-5553) is authorised by the Malta Financial Services Authority to carry on both Long Term and General Business under the Insurance Business Act, 1998. COM NO 130314 824