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Company Announcement 11 March 2015

he 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 11 March 2015, approved the audited financial statements for the financial year ended 31 December 2014. 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 Friday 24 April 2015. 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 Tuesday 23 March 2015 (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 2014. The Audited Financial Statements will be available for viewing on the Company’s website at www.middlesea.com as from the 12 March 2015.

The Board of Directors recommends, for the approval of the AGM, the payment of a final net dividend of €3,520,000 (2013 – €3,520,000) equivalent to a gross dividend of €0.05127 per share (2013 – €0.045). The final dividend, if approved at the AGM, will be paid on the 23 May 2015 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 30 April 2015.

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By Order of the Board

Carlo Farrugia
Company Secretary

Financial Highlights as at the 31 December 2014

Financial highlights of the results for the year ended 31 December 2014 include the following:

  • Total Group profit before tax for the year amounted to €17.31 million as compared to €17.30 million during the previous year with after tax profits at €12.37 million compared to €10.95 million in 2013.
  • The standalone Company registered a satisfactory technical result on its operations. The increase in new business during the year saw core business premium volumes increasing by 12.6% to an all-time record. Investment income going to profit and loss reduced due to lower fair value movements particularly on the equity portfolio though positively influenced by currency movements. Notwithstanding a lower dividend from Group companies, amounting to €3.60 million compared to €4.09 million in 2013, the Company registered a profit before tax for FY 2014 amounting to €6.38 million, compared to a profit of €5.90 million in FY 2013. Profit after tax profit reduced from €5.21 million in FY 2013 to €4.28 million in FY 2014 as the dividend received from MSV Life p.l.c.(‘MSV’) was mainly paid from taxed profits whilst in FY 2013 it was entirely paid from untaxed profits.
  • The Group’s results include the consolidated MSV profit before tax of €14.26 million (2013: €15.48 million). MSV reported a turnover (including investment contracts without DPF) of €156.05 million compared to €111.32 million in 2013 as a result of increases in demand across all products in particular the life protection business and single premium savings contracts. The resilience and upturn in equity and bond markets produced stronger returns than those registered in 2013 with net investment income increasing from €98.19 million in 2013 to €119.38 million in 2014. The profit after tax consolidated for FY 2014 amounted to €10.14 million (2013: € €9.85 million).
  • Total Group capital and reserves attributable to shareholders (excluding non controlling interests) at 31 December 2014 was €80.13 million, compared to €73.10 million as at 31 December 2013.

During the year the Company consolidated its strong balance sheet, increasing its Shareholders’ equity to € 61.71 million, still maintaining a strong regulatory solvency position as at 31 December 2014 of 486% on its general business, when compared to the minimum regulatory requirement of 150%.

A gross dividend in respect of year ended 31 December 2014 of €0.05127 per share amounting to a total dividend of €4,716,890 (2013: €4,140,222) 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 (2013: €3,520,000)

The Board expresses its satisfaction for the results obtained in 2014. The results and premium volumes achieved continue to place the Company and the Group at the helm of the local insurance market, backed by the strong 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 Monday 23 March 2015 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 Monday 23 March will receive notice of and be entitled to attend and vote at the Company’s Annual General Meeting scheduled for Friday 24 April 2015.

Pursuant to the Malta Stock Exchange Bye-Laws, all shareholders appearing on the Company's Register of Members as at close of business on Thursday 30 April 2015, will be paid, on Saturday 23 May 2015, the final dividend as approved by the Annual General Meeting.

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 2014, as approved by the Directors on 11 March 2015, and are published in terms of MFSA Listing Rule 5.54.

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