Total Group profit before tax for the year amounted to €18.56 million as compared to €17.71 million during the previous year with after tax profits at €14.04 million compared to €13.52 million in 2017.
The standalone Company registered a turnover of €69.69 million in gross premium written, a 12.5% increase over FY2017 registering a marginal increase in its market leadership share. Technical results remained strong notwithstanding experiencing the worst Motor claim in the history of the Maltese insurance market. Investment Income saw a decline through low yields and negative fair value movements from financial markets. With dividends from Group companies marginally reducing to €6.84 million compared to €7.08 million in 2017, the Company registered a profit before tax for FY 2018 amounting to €11.42 million, compared to a profit of €12.17 million in FY 2017. Profit after tax decreased from €10.34 million in FY 2017 to €9.43 million in FY 2018.
The Group’s results include the consolidated MAPFRE MSV Life p.l.c. (“MMSV”) profit before tax of €13.70 million (2017: €12.31 million). MMSV reported a turnover (including investment contracts without DPF) of €322.72 million compared to €291.46 million in 2017 as a result of increases in demand across all products in particular single premium savings contracts and life protection business. With all the major investment asset classes experiencing negative returns a negative investment income of €43.3 million was registered compared to an income of €66.4 million in 2017. The profit after tax consolidated for FY 2018 amounted to €10.88 million (2017: € €10.02 million).
Total Group capital and reserves attributable to shareholders (excluding non-controlling interests) as at 31 December 2018 was €91.67 million, compared to €92.88 million as at 31 December 2017.
The Company maintained a strong balance sheet, with its Shareholders’ equity amounting to €68.31 million still maintaining a strong regulatory solvency position as at 31 December 2018 under the Solvency II regime.
A gross dividend in respect of year ended 31 December 2018 of €0.11531 per share amounting to a total dividend of €10,608,738 (2017: €10,400,000) is to be proposed by the directors at the forthcoming annual general meeting.
The Board will also recommend the payment of a special net dividend amounting to €8,000,000 equivalent to a gross dividend of €0.08696 per share. This special dividend results from a special dividend to be distributed by the subsidiary MAPFRE MSV Life p.l.c. from past years retained earnings.
The Board outlook for 2019 is one of cautious optimism where the demand for general business is expected to continue to grow while the demand for the protection savings and investments products in life is expected to remain strong.
The Company will continue to maintain strong focus on our customers through the implementation of a number of initiatives to strengthen further the digital platform and widen the digital marketing strategy.
MAPFRE Middlesea p.l.c. (C-5553) is authorised by the Malta Financial Services Authority (MFSA) to carry on both Long Term and General Business under the Insurance Business Act, Cap 403 of the Laws of Malta.