The consolidated MAPFRE Middlesea Group result for the first six months of 2016 amounted to a profit before tax of €5.67 million, compared to €15.18 million registered during the comparative period last year. The profit after tax allocated to shareholders amounted to €2.17 million as compared to €5.27 million in 2015. The June 2015 result was an exceptional one particularly for MSV Life p.l.c. (“MSV”) both due to a one-off reinsurance cost adjustment and returns on financial investments that peaked in the first six months of 2015.
The growth in general business acquired by MAPFRE Middlesea p.l.c. (“Company”) during the last twelve months and the growth in operations to support it, increased the cost base of the Company significantly. With such portfolios still being fully assimilated, and with pricing still being adjusted, the resulting technical result performed below the comparative period of 2015.
The results of MSV reflect the introduction of an annual management charge on assets under management introduced at the beginning of the year which provides stability to the results shielding them from the impact of fluctuations in the financial markets.
Group’s gross premiums written have increased by 44.90% during the first six months of 2016. The growth in General Business turnover of 47.42% was derived from the portfolio transfer concluded in 2015 and new intermediaries but also through strong organic growth. Life premiums written saw a growth of 44.40%. This reflects the competitiveness of such products as compared to other available financial instruments in the market with a high percentage of maturities being reinvested with MSV.
The Group continues to enjoy a healthy Solvency position as a result of the attained positive results.
The Group will continue to take the necessary actions aimed at improve its technical results during the second half of the year. Through the execution of strategic initiatives the Company aims at delivering improved results to its shareholders whilst continuing to offer its clients the best value in all lines of business and adhering to its mission of being the most trusted insurer.
In line with Company policy, the Board of Directors do not propose to pay an interim dividend for the half year ended 30 June 2016 (2015 – nil).
MAPFRE Middlesea p.l.c. is authorized by the Malta Financial Services Authority to carry on long term and general business of insurance under the Insurance Business Act, 1998.