MAPFRE Middlesea registers profit before tax of €11.65 million in 2016
The Board of Directors of MAPFRE Middlesea p.l.c has announced that the Total Group profit before tax for the year 2016 amounted to €11.65 million as compared to €17.84 million during the previous year with after tax profits at €8.93 million compared to €11.87 million in 2015. 2015 Group results were influenced by a one-off gain of pre-tax €5.05 million arising as a result of a major restructuring of MAPFRE MSV Life’s p.l.c. reinsurance programme as from 2015. The standalone Company registered a turnover of 60.01 million in gross premium written, a 23.0% increase over FY2015 and strengthening market leadership having a 34.01% market share based on preliminary market statistics. Technical results were subdued due to a deteriorating motor combined ratio. Investment income going to profit and loss increased as a result of higher fair value movements particularly on the property portfolio. With dividends from Group companies reducing slightly to €2.67 million compared to €2.84 million in 2015, the Company registered a profit before tax for FY 2016 amounting to €2.48 million, compared to a profit of €5.07 million in FY 2015. Profit after tax reduced from €4.64 million in FY 2015 to €2.60 million in FY 2016. The Group’s results include the consolidated MAPFRE MSV Life p.l.c. profit before tax of €11.55 million (2015: €15.58 million). MSV reported a turnover (including investment contracts without DPF) of €274.50 million compared to €224.46 million in 2015 as a result of increases in demand across all products in particular single premium savings contracts and life protection business. Equity and bond markets produced robust yet somewhat weaker returns than those generated in prior year with net investment income decreasing from €91.2 million in 2015 to €78.1 million in 2016. The profit after tax consolidated for FY 2016 amounted to €8.59 million (2015: € €10.10 million). Total Group capital and reserves attributable to shareholders (excluding non-controlling interests) at 31 December 2016 was €86.83 million, compared to €82.30 million as at 31 December 2015. The Company maintained a strong balance sheet, with its Shareholders’ equity amounting to €62.10 million still maintaining a strong regulatory solvency position as at 31 December 2016 under the new Solvency II regime. A gross dividend in respect of year ended 31 December 2016 of €0.03826 per share amounting to a total dividend of €3,520,000 (2015: €5,156,715) 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 (2015: €3,520,000) The Board with a clear strategy to return to a strong technical profit whilst aware of the challenges that are inherent, looks forward with optimism to 2017. The Company will continue with the project, in conjunction with companies forming part of the MAPFRE Group for the implementation of the new insurance IT system and envisage the rollout of further products on such system in the coming year. The net book value as at 31 December 2016 of this system amounts to €2.98 million. MAPFRE Middlesea 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. MAPFRE MSV Life p.l.c. (C-15722) is authorised by the Malta Financial Services Authority to carry on long term business under the Insurance Business Act 1998.