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Company Announcement issued 13 March 2014

MSI/CF/MSE00314

13 March 2014

The following is a Company Announcement issued by Middlesea Insurance p.l.c., pursuant to the Listing Rules of the Malta Financial Services Authority.

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The Board of Directors of Middlesea Insurance p.l.c., has today, the 13 March 2014, approved the audited financial statements for the financial year ended 31 December 2013. The Board resolved that these audited financial statements be submitted for the approval of the Shareholders at the forthcoming Annual General Meeting (AGM) scheduled for Tuesday 29 April 2014. A preliminary statement of the annual results is being attached herewith in terms of the Listing Rules. Shareholders on the Company’s register at the Central Securities Depositary of the Malta Stock Exchange as at close of business on Friday 28March 2014 (the record date), will receive notice of the AGM together with a copy of the Annual Report and Financial Statements for the year ended 31 December 2013. The Audited Financial Statements will be available for viewing on the Company’s website at www.middlesea.com as from the 14 March 2014.

The Board of Directors recommends, for the approval of the AGM, the payment of a final net dividend of €3,520,000 (2012 – €1,745,000) equivalent to a gross dividend of €0.045 per share (2012 – €0.025). The final dividend, if approved at the AGM, will be paid on the 28 May 2014 to the Shareholders on the Company’s share register at the Central Securities Depository of the Malta Stock Exchange at the close of business as at the 6 May 2014.

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By Order of the Board

Carlo Farrugia

Company Secretary

Financial Highlights as at the 31 December 2013

Financial highlights of the results for the year ended 31 December 2013 include the following:-

  • Total Group profit before tax for the year amounted to €17.30 million as compared to a profit during the previous year of €18.01 million.
  • The operations of the standalone Company registered satisfactory technical results notwithstanding a reduction of 11.2% in gross premiums written resulting from the termination of one of its main agency agreements in the beginning of the year. Investment income reduced due to lower fair value movement particularly on the property portfolio and negatively influenced by currency movements. The higher dividends from Group companies, amounting to €4.09 million compared to €1.22 million in 2012, led to a profit before tax generated by MSI for FY 2013 amounting to €5.90 million, compared to a profit of €3.29 million in FY 2012.
  • The Group’s results include the consolidated MSV results of €15.48 million (2012:  €15.98 million).  MSV reported a turnover of €111.32 million compared to €87.31 million in 2012 as a result of increases across various classes of protection business and stronger single premium business. The resilience and upturn in equity and bond markets kept revenue patterns similar to 2012 with net investment income increasing from €95.44 million in 2012 to €98.19 million in 2013. In prior year there was a significant one-off deferred tax gain whereby all unutilised tax amounts available for relief against future taxable income in terms of the applicable law were recognised.  In 2013, the MSV Group recorded an after-tax profit of €9.85 million for the year.
  • Total Group capital and reserves attributable to shareholders (excluding non controlling interests) at 31 December 2013 was €73.0910 million, compared to €67.0102 million as at 31 December 2012.

During the year the Company consolidated its strong balance sheet, increasing its Shareholders’ equity to €60.84 million, still maintaining a strong regulatory solvency position as at 31 December 2013 of 515% on its general business, when compared to the minimum regulatory requirement of 150%.

A gross dividend in respect of year ended 31 December 2013 of €0.045 per share amounting to a total dividend of €4,140,222 (2012: €2,300,000) 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 (2012: €1,745,000)

The Board expresses its satisfaction for the results obtained in 2013.  The launch of a range of innovative and enhanced products coupled by services offered, pioneered by the Company, have bolstered the image of Middlesea Insurance p.l.c. and the brand name of MAPFRE.  The Board looks forward with optimism to another challenging year for the Group.

Notice is hereby given that Friday 28 March 2014 is the "record date" for the purposes of Article 53 (2) (b) of the Company's Articles of Association. All shareholders appearing on the Company's Register of Members as at the close of business on Friday 28 March will:

i) receive notice of and be entitled to attend and vote at the Company’s Annual General Meeting scheduled for Tuesday 29 April 2014, and

ii) be paid, on Wednesday 28 May 2014, the final dividend as approved by the Annual General Meeting.

Pursuant to the Malta Stock Exchange Bye-Laws, the Company's Register of Members as at close of business on Tuesday 6 May 2014 will include trades undertaken up to and including Wednesday 30 April 2014.

By Order of the Board

Basis of preparation

These figures have been extracted from Middlesea Group’s audited financial statements for the year ended 31 December 2013, as approved by the Directors on 13 March 2014, and are published in terms of MFSA Listing Rule 5.54.

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