17 July 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.
The Board of Directors of Middlesea Insurance p.l.c., have today the 17 July 2014, considered and approved the unaudited financial statements of the Group for the financial half year ended 30 June 2014. A preliminary statement of interim results is being attached herewith in terms of the Listing Rules. The Interim Financial Statements are available for viewing on the Company’s website at www.middlesea.com.
In line with Company policy, the Board of Directors does not propose the payment of an interim dividend.
By Order of the Board
Review of Group Operations
Half Yearly Financial Statements - 30 June 2014
The Directors present the unaudited consolidated interim results of Middlesea Insurance p.l.c..
The consolidated Middlesea Group result for the first six months of 2014 amounted to a profit before tax of €8.21 million, compared to €6.4 million registered during the comparative period last year. The profit after tax allocated to shareholders amounted to €3.09 million as compared to €2.44 million in 2013. The improved results were generated mainly from the Group’s life operations with MSV Life p.l.c. registering higher profits than the comparative period last year. The general business returned a satisfactory result in an increasingly competitive market.
The Group’s gross premiums written have increased by 16.9% during the first half year of 2014. The Company’s turnover registered another important growth compared to the slow growing Maltese market with an increase of 12.9%. This successful strategy is significant in the light of the continuous fierce competition and severe price undercutting dominating the general business market. MSV Life p.l.c.’s premiums written increased by 18.4%, also contributing to the increased volume of business of the Group.
In the first six months of the year the major developed economies continued to make progress towards recovery underpinning positive stock market performance. This had a positive influence on the investment portfolio returns particularly that of MSV Life p.l.c., registering returns higher than previous year and forecasts. With local financial sector equities experiencing a downturn, the Holding Company portfolio registered losses during the period under consideration.
The Group continues to enjoy a healthy Solvency position as a result of the positive results attained by it.
Financial highlights for the half year
- General Business Gross Premium written increased by 12.86% from €16.06 million in 2013 to €18.13 million as at 30 June 2014.
- Long term Gross Premium Written by the Group increased by 18.07% to €66.24 million compared to €56.11 million in the comparative period in 2013.
- Return from Investments allocated to the non-technical account for the six months to 30 June 2014 amounted to a gain of €2.98 million compared to €2.68 million in 2013.
- The Group registered a Profit after taxation for the 6 months ended 30 June 2014 of €5.93 million, of which €3.09 million attributable to shareholders, compared with a profit after taxation of €4.47 million for the same period last year.
- Gross Technical Reserves at 30 June 2014 increased by 5.8% to €1.35 billion over the 31 December 2013 reserves of €1.27 billion. Net of reinsurers’ share, technical provisions stand at €1.33 billion, an increase of 5.9% over the 31 December 2013 provisions of €1.25 billion.
- Total assets increased by 5.4% and totaled €1.52 billion as at 30 June 2014, as compared to the total assets of €1.44 billion at 31 December 2013.
- Total Equity of the Group attributable to shareholders amounted to €72.91 million as at 30 June 2014, down from €73.10 million at 31 December 2013 as a result of the payment of dividend.
- The Group is compliant with the regulatory solvency requirements both for the long-term and general business. Middlesea Insurance p.l.c.’s solvency position as at 30 June 2014 on its general business stood at 474% of the minimum solvency requirement (31 December 2013 – 515%) following the payment of the dividend for Financial year 2013.
With improved topline and bottom-line performances, the Group looks forward to the second half with cautious optimism in achieving its targets. The Group will continue in its endeavors to be at the forefront in introducing innovative products to the Maltese market, supporting its growing intermediary salesforce, always putting focus on the customer experience. This is pursued with the commitment towards improving returns to shareholders through strategies aimed at enhancing technical performance and cost curtailment in the light of the prevailing harsh competitive environment.
In line with Company policy, the Board of Directors do not propose to pay an interim dividend for the half year ended 30 June 2014 (2013 – nil).
Notes to the Condensed Financial Statements
For the half year ended 30 June 2014
- Middlesea Insurance p.l.c. is authorized by the Malta Financial Services Authority to carry on long term and general business of insurance under the Insurance Business Act, 1998.
- Basis of preparation
These condensed financial statements are being published in accordance with Chapter 5 of the Listing Rules of the Listing Authority – Malta Financial Services Authority and the Prevention of Financial Markets Abuse Act 2005. These statements have been extracted from the Group’s unaudited financial statements as approved by the Board on 17 July 2014 and have been prepared in accordance with International Financial Reporting Standards as adopted by the EU applicable to interim financial reporting (IAS34). They do not include all information required for full annual financial statements, and should be read in conjunction with the financial statements for the year ended 31 December 2013. The accounting policies applied in these condensed financial statements are the same as those applied by the group in its financial statements for the year ended 31 December 2013.
Related party transactions with other members of the Middlesea Group were at a similar level to the comparable period.
The Group is organized into three geographic segments: Malta, Gibraltar and London. Whilst the Malta segment is involved in general business and long term business, the Gibraltar and London segments are general business segments that are in run-off.
Statement pursuant to Listing Rule 5.75.3 issued by the Listing Authority
We confirm that to the best of our knowledge:
- the condensed interim financial statements for the Group give a true and fair view of the financial position as at 30 June 2014, financial performance and cash flows for the period then ended, in accordance with accounting standards adopted for use in the EU for interim financial statements ( IAS 34 ‘ Interim Financial Reporting’) for the Group; and
- the commentary includes a fair review of the information required in terms of Listing rule 5.75.2.
Martin Galea Lino Spiteri Alfredo Munoz Perez
Chairman Director President & CEO