The parent company, Middlesea Insurance p.l.c. (‘Company’), registered a satisfactory result on its operations with a 55% increase in the balance of the technical account for general business. The increase in new business during the year saw core business premium volumes increasing by 12.6% to an all-time record. The Company registered a profit before tax for FY 2014 amounting to €6.38 million, compared to a profit of €5.90 million in FY 2013. Profit after tax reduced from €5.21 million in FY 2013 to €4.28 million in FY 2014 the dividend received from MSV Life p.l.c. (‘MSV’), was mainly paid from taxed profits whilst in FY 2013 was entirely paid from untaxed profits.
The Group’s results include the consolidated MSV profit before tax of €14.26 million (2013: €15.48 million) and after tax of €10.14 million (2013: €9.85 million). MSV, jointly owned by the Company and Bank of Valletta p.l.c., reported a turnover (including investment contracts without DPF) of €156.05 million compared to €111.32 million in 2013 as a result of increases in demand across all products in particular the life protection business and single premium savings contracts. The resilience and upturn in equity and bond markets produced stronger returns than those registered in 2013 with net investment income increasing from €98.19 million in 2013 to €119.38 million in 2014.
Total Group capital and reserves attributable to shareholders (excluding non-controlling interests) as at 31 December 2014 amounted to €80.13 million, compared to €73.10 million as at 31 December 2013.
During the year the Company consolidated its strong balance sheet, increasing its Shareholders’ equity to €61.71 million, still maintaining a strong regulatory solvency position as at 31 December 2014 of 486% on its general business, when compared to the minimum regulatory requirement of 150%.
A gross dividend in respect of year ended 31 December 2014 of €0.05127 per share amounting to a total dividend of €4,716,890 (2013: €4,140,222) 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 (2013: €3,520,000)
The Board expressed its satisfaction for the results obtained in 2014. The results and premium volumes achieved continue to place the Company and the Group at the helm of the local insurance market, backed by the strong 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.
Middlesea insurance p.l.c. (c-5553) is authorised by the MFSA to carry on both long term and general business under the insurance business act, 1998. COM 12032015 900.