Middlesea Insurance plc announced that during the first quarter of the current financial year the (unaudited) operating profits of Middlesea Insurance plc and of its associate company Middlesea Valletta Life Assurance Co Ltd (MSV) have been satisfactory. The Group registered a profit before taxation of €2.8 million for the period, as compared to a loss of €5.3 million during the first quarter of the previous year. The improvement in the technical results of the insurance operations of Middlesea Insurance plc, the turnaround of the capital markets, together with the discontinuance of the operations of the Italian subsidiary (losses from this subsidiary for the first quarter of 2009 amounted to €3 million) have all been important contributing factors to the improved first quarter 2010 results. MSV also had an encouraging first quarter, with profits after taxation for the period of €2.0 million (March 2009: loss of €3.3 million), 50% of which have been accounted for in the Group results.   

The balance sheet of Middlesea Insurance plc, was further strengthened during the period under consideration by the profits generated. Furthermore, subsequent to the end of the quarter, Middlesea Insurance plc concluded the implementation of measures agreed with the Regulator (as referred to in note 5.4 of the FY 2009 financial statements) with respect to its regulatory solvency position. The implementation of these measures restored the regulatory capital position of the company to the level required by the Malta Financial Services Authority. The company was therefore, once again, fully compliant with the relevant solvency and capital regulatory requirements.

Middlesea Insurance plc also stated that no other material events and/or transactions were noted since the end of the first quarter of this financial year till today.

The Chairman, Mr Joseph F.X.Zahra said “Middlesea is a strong company with an excellent client base and has a dedicated and talented executive team. The relationships with our local clients remain at the heart of our ability to create value for our shareholders. The renewals we have secured in 2010 to date, and our ability to maintain our market position, even during very difficult times, demonstrate the strength of these relationships and the quality of our people – and our priority will be to build further on these relationships with an unparalleled level of client service.”

The Middlesea Group is composed of Middlesea Insurance p.l.c. (C-5553), International Insurance Management Services Ltd. (C-23610). Middlesea Valletta Life Assurance Co. Ltd (MSV) (C-15722) is an associate company of Middlesea Insurance p.l.c. Growth Investments Ltd. (C-21821) is a subsidiary of MSV. COM 170510411