A Historical Overview
Middlesea Insurance p.l.c. was registered as Middle Sea Insurance Company Limited under the Commercial Partnerships Ordinance 1962 on 29 June 1981. The Company began trading on 1 July 1981 on the strength of a licence issued under the Insurance Business Act 1981.

Middle Sea Insurance Company Limited was Malta's only international insurance company and from its inception transacted business in all classes of insurance and reinsurance both in Malta and worldwide.

Professional Insurance Training
At the time of the company’s inception, anyone seeking professional recognition in insurance had to study overseas or undertake a correspondence course with the Chartered Insurance Institute of the United Kingdom. No direct individual training was available on the Island. It was with this in mind that in 1981 the Mediterranean Insurance Training Centre (MITC) was set up as a joint venture with Mediterranean Insurance Brokers.

International Reinsurance
The Company’s second year of operations saw Middle Sea Insurance going into underwriting international reinsurance. Local reinsurance business continued to play a major role in the Company's business and progress was made in the direct underwriting of long-term business (life assurance) and support to the market in certain specialised large risks which required additional underwriting capacity.

The Opening of Middle Sea House
A major event for 1982 was the official opening of Middle Sea House in Floriana on 8 July by the Minister of Finance, the Hon. Mr Lino Spiteri. The opening was attended by over 150 overseas guests and senior executives of major international and local representatives of insurance companies.

London Office Opened
Year after year Middle Sea’s international reinsurance and local reinsurance retained their major share of the company's portfolio. In 1983 a contact office was opened in London to take advantage of the available opportunities.

Life Business
Middle Sea Insurance commenced writing Life Business in January 1983 and by the end of the year had issued 381 policies providing an annualised premium of Lm177,217. This increased by 25% in 1984 when the Company grew on all fronts and registered a total premium income of Lm4.9 million while achieving very good results in international reinsurance business.

In the meantime, Life Business was growing steadily so much so that in 1985 it had reached a sufficient surplus situation to enable a bonus to be paid to with-profit policyholders.

Researching Overseas Markets
Even at this early stage, the restrictions of a small island were already being felt. In 1985 Mr Sunny Borg, the Chairman of the Board, declared that "to sustain the continued growth of a company with the expertise and ambition of Middle Sea we have been actively researching the possibility of entering overseas markets." Mr Borg mentioned the UK and Italian markets as offering possibilities for expansion.

The contact office in London was showing its mettle but the expansion operation had to wait for some time to be achieved. EU (EEC at the time) regulations precluded direct reinsurance underwriting in the UK. Plans were taken in hand to apply for the opening of a London branch. The London Branch became operational on 1 January 1988.

New Chief Executive and Managing Director
1986 saw a successful restructuring exercise in shareholding and also a change in the top management of the company. Mr Philip Long, Managing Director since inception, handed over to Mr Mario C. Grech who became Middle Sea Insurance Chief Executive and Managing Director.

New Requirement for Reinsurance Cedants
An important introduction was the requirement of all local reinsurance cedants to enter formally into a contracted relationship with Middle Sea through the signing of treaties with the result that the Reinsurance Procedures became legally effective.

A Strong Position
In 1990 Middle Sea Insurance showed a profit of Lm280,000 on its direct underwriting account, the best ever it had had in ten years of operation. This placed the Company in a strong position to meet the challenges poised by the expected liberalisation of the insurance market and the end of the legal cession, in line with the policy of a new government elected in 1987.


Mr Sunny Borg on the tenth anniversary of Middlesea Insurance p.l.c. - 1991

New Chairmanship
1992 brought about a change in chairmanship. Dr Giannino Caruana Demajo took over from Mr Sunny Borg who had served the Company since 1982. In the words of the new Chairman, under the leadership of Mr Borg "The Middle Sea Group of Companies has built the firm foundations and the excellent international reputation it enjoys today."

Positive Results
That same year registered a dramatic increase in gross direct underwriting premia which rose to nearly Lm2.5 million from the 1991 figure of just over Lm1 million. Life operations continued to produce better results from year to year with the 1991 figure of Lm598,592 gross written premia rising to Lm929,207 in 1992.

Agency Agreement Signed
The first agency agreement was signed in 1993 with Mizzi Insurance Agency Limited and discussions with other agencies were in the course of finalisation.

Core operations were revised and the resources of the intermediary network, composed of brokers, salespersons and tied agents and binder-holders were garnered.

Preparations for Joint Bancassurance Venture
It was also in 1993 that active preparations were being made for the admission of the parent Company to a listing on the Malta Stock Exchange and for the formation of a joint bancassurance venture in life assurance business together with Bank of Valletta Limited and Münchener Rückvericherungs-Gesellschaft.

Change in Chairmanship
1994 brought about another change in chairmanship. Dr G. Caruana Demajo had to retire on his appointment as Judge, and Mr Mario C. Grech, the Company's Chief Executive since 1986, was appointed in his stead.

Middle Sea Shares Traded on Stock Exchange
Following a restructuring and increase of the Company's capital, on 28 September 1994 Middle Sea shares were traded for the first time on the Stock Exchange. This was a milestone in the history of the Stock Exchange - Middle Sea was the first non-banking institution to be quoted on the Exchange.


The first trading session of Middlesea Insurance p.l.c. shares on the Malta Stock Exchange - 1994

Middle Sea Valletta Life Set Up
The second major event of that same year was the establishment of Middle Sea Valletta Life Assurance Company Limited which commenced operations on 2 September. This specialist life assurance company introduced the concept of bancassurance in Malta. It was also directed at the enhancement and enlargement of the indigenous insurance industry based on a European model.

The setting up of Middlesea Valletta Life Assurance Company Ltd - 1994

Subsidiary company set up
In 1991 Middle Sea Insurance established a subsidiary company – International Insurance Management Services Ltd – specialising in risk management, insurance and reinsurance company formation and management (including captives) in addition to other outsourcing services.

The Company has been active in establishing Malta as an international financial centre of repute. It also set up the first captive insurance and reinsurance company in Malta.

From transition to consolidation
1996 was the first year in which MSI operated totally independently of the legal cession. The first phase of the transitional period had come to a successful end.

This was laying the foundation for the development of Middle Sea’s presence in foreign primary markets, given that the Company's share of the small local market had its inherent growth restrictions and liabilities.

Middle Sea Valletta Life obtains robust results
Meanwhile Middle Sea Valletta Life Assurance Company Limited immediately produced better results than projected and has continued, year after year, to make a positive contribution to Middle Sea’s general performance.

Growth Investments Ltd
A wholly-owned subsidiary of Middle Sea Valletta, Growth Investments Ltd, was set up in 1997. The Company was established to market collective investment funds locally, to act as a financial intermediary for securities listed on the Malta Stock Exchange and as the exclusive representative in Malta of Fidelity Funds SICAV, the largest independent fund manager in the world.

Increase in Agencies
These years saw an increase in the number of agencies underwriting business under the Middle Sea banner. In quite a number of cases this was the result of a number of UK-based insurance companies withdrawing from overseas markets such as Malta. The strength and expertise of Middle Sea Insurance could offer these agencies underwriting facilities. At the same time, the Company was consolidating its position as the leading indigenous provider of insurance and reinsurance services.

Withdrawal of Capacity from London Market                                                                                   This was also a time when the international reinsurance situation was subjected to pricing pressures and highly competitive market conditions. The London Branch registered a negative result and, with the future looking rather gloomy, the situation was being continually monitored to assess the feasibility of retaining this involvement. The recurrence of claims following natural catastrophes compounded the problem further. Eventually the decision was taken to close the branch which ceased operating on 1 November 2000.

A Euro-Mediterranean Presence
The entry of Middle Sea Insurance into foreign countries as a direct insurer was high on the Company’s agenda. It had been established that the Euro-Mediterranean region posed a real challenge with realistic possibilities. In 1998 discussions to establish a branch office in Gibraltar were in an advanced stage while contacts had also been made to acquire a shareholding in an Italian subsidiary of a Spanish insurance company.

Both ventures were launched in 2000 with the Gibraltar office opening on 1 June 2000 following the issue of a licence from the Financial Services Commission of Gibraltar and the signing of an agreement with Mascarenhas Insurance and Finance Ltd who were appointed representative agents for Middle Sea Insurance.

Progress Assicurazioni S.p.A.
The agreement with the Spanish company Corporacion Mapfre Compania Internacional de Reaseguros S.A. was signed on 28 September 2000. Middle Sea bought a 51% shareholding in Mapfre Progress S.p.A.  and on that very day the name of the company was changed to Progress Assicurazioni S.p.A. At present, the company has 111 sales outlets in Italy and Sicily.


The signing of the Partnership Agreement between Middlesea Insurance p.l.c. and Corporacion Mapfre S.p.A.; Middlesea Insurance acquired 51% of Progress Assicurazioni S.p.A. – 2000

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