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€15.18 million profit before tax for the first half of 2015

The consolidated MAPFRE Middlesea Group result for the first six months of 2015 amounted to a profit before tax of €15.18 million, compared to €8.21 million registered during the comparative period last year. The profit after tax allocated to shareholders amounted to €5.27 million as compared to €3.09 million in 2014. All Group companies registered improved results with the main driver being the Group’s life operations with MSV Life p.l.c. registering higher profits than the comparative period last year mainly resulting from a one-off saving from renegotiation of the reinsurance treaty. The general business returned a satisfactory result in an increasingly competitive market.

The Group’s gross premiums written have increased by 49.4% during the first six months of 2015. The General Business turnover continued to register important growth in excess of market performance with an increase of 15.1%. The competive environment we operate in and the price pressures to maintain or acquire business makes this growth rate a significant one. Life premiums written increased by 58.8% thus having the major impact on the increased volume of business of the Group.

Following an outstanding performance during the initial months of the year, worries about the Greek debt default caused markets to retract sharply during the last two months. Bond yields have returned to the levels of end of 2014 following the downturns experienced earlier in the year. Notwithstanding this the investment portfolios registered higher returns when compared to June 2014 particularly those of MSV Life p.l.c.. The positive performance of the MSE Index, during the period, resulted in positive movements on the Holding Company portfolio which had registered losses during the same period in 2014.

The Group continues to enjoy a healthy Solvency position as a result of the attained positive results.

With the growth being registered and improved bottom-line performances, the Group, whilst remaining vigilant, is confident in achieving its targets for the year. The portfolio transfer as a going concern from Allcare Insurance Limited which is being finalised as it is subject to MFSA approval will increase market share of the Company leading to optimasation of available capital. Focus will remain on the customer experience offering products that are innovative in the market and tapping into clients increasing needs. This is pursued with the constant commitment in delivering improved returns to shareholders through strategies aimed at enhancing technical performance and cost efficiencies.

In line with Company policy, the Board of Directors do not propose to pay an interim dividend for the half year ended 30 June 2015 (2014 – nil).

MAPFRE Middlesea 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.

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