Middlesea Insurance plc (“Middlesea”) and Corporación Mapfre (“Mapfre”) are pleased to announce a further strengthening of the partnership that has been created between the two organisations.  This was in line with the strategy of Middlesea in the restructuring of its shareholding in preparation for its further expansion overseas with emphasis on the Euro-Mediterranean region.

Following the requisite approval by the MFSA, permission was granted to allow Corporación Mapfre to acquire Air Malta p.l.c.’s 7.33% shareholding and 7.85% shareholding from the Government of Malta.  This transaction took place on the Malta Stock Exchange on Friday, 28 January 2005 as a consequence of which Mapfre’s holding increased from 5.49% to 20.66% and the Government of Malta now holds 7.93% shareholding.

Mr M.C. Grech, Chairman & CEO of Middlesea Insurance plc said that the relationship between Middlesea and Mapfre started when Corporación Mapfre S.A., formed part of the panel of reinsurers used by Middlesea.  The importance of evolving this relationship into a partnership took fruition on 28 September 2000, when the purchase of 51% of the share capital of Progress Assicurazioni SpA was completed by Middlesea through the purchase of shares from Mapfre.  Moreover, agreement has been reached between Middlesea Insurance plc and Corporación Mapfre that Middlesea will acquire the remaining 39% shareholding in Progress Assicurazioni SpA from Corporación Mapfre.  This will bring the shareholding in Progress of Middlesea Insurance plc 90% and Middlesea Valletta Life 10%.

Mr D. Sugranyes Bickel, Vice Chairman and CEO of Corporación Mapfre, said that as a policy, Mapfre sought to have equity in the holding company rather than in subsidiary group companies.  Thus they were never averse to having a higher involvement in Middlesea Insurance plc.  This step dovetailed with the shareholding of the company and the emphasis that growth could only come from outside of Malta, especially having strategic partners like Corporación Mapfre, Munich Re and Assicurazioni Generali.

This development has facilitated Middlesea Insurance plc into becoming a fully fledged financial organisation with its shareholding structure as follows: Bank of Valletta p.l.c. 21.65%, Corporación Mapfre S.A. 20.66%, Munich Reinsurance Co. 12.73%, Government of Malta 7.93%, HSBC Bank Malta plc as custodian/subcustodian 5.64%, Assicurazioni Generali SpA 4.67%, Swiss Re Italia SpA 1.00% and the General Public 33.65%.

Corporación Mapfre S.A. is the holding company of a group of insurance, reinsurance, fund management and service companies, ranking as the largest insurance group in Spain and one of the largest insurance groups in Latin America. As of the close of September 2004, it recorded a premium income of €5 billion and a net profit of €135,1 million, increasing 27% and 21%, respectively, over the same period of 2003.

Middlesea Insurance p.l.c. is a company authorised under the Insurance Business Act, 1998 to carry on both Long Term and General business.       

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