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 for the 6 months ended 30 June 2014 was €5.93 million compared to €4.47 million as at June 2013, of which 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 premium written increased by 16.9% during the first half 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 premium written increased by 18.4% contributing to an increased volume of business for the Group. General Business Gross Premium written increased by 12.86% from €16.06 million in 2013 to €18.13 million as at 30 June 2014. 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.
In the first six months of the year the major developed economies continued to show signs of moderate 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. 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.
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 totalled €1.52 billion as at 30 June 2014, as compared to the total assets of €1.44 billion at 31 December 2013, whilst 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.
With improved top line 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 endeavours 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)
Middlesea Insurance p.l.c. (C-5553) is authorised by the Malta Financial Services Authority to carry on both Long Term and General Business under the Insurance Business Act, 1998.