Last Updated on Tuesday, 3 August, 2021 at 3:44 pm by Andre Camilleri
The consolidated MAPFRE Middlesea Group registered a profit before tax for the first six months of 2021 of €10.98 million, compared to €10.71 million recorded during the comparative period last year. The profit after tax and non-controlling interests, allocated to shareholders, amounted to €4.93 million as compared to €4.86million in 2020. Long term business delivered a stronger performance both as a result of significant increases in new business revenue and a positive investment return, compared to low volumes and financial losses that were being registered in the comparative period last year from the economic fallout of the COVID-19 pandemic. On the other hand, non-life business, though registering a satisfactory performance, could not match the pandemic driven exceptional result achieved last year.
MAPFRE Middlesea p.l.c.’s (‘the Company’) non-life business saw premium written recover from the subdued levels of June 2020. The net combined ratio moved upwards reflecting the increased claim frequency in Motor as the country returned to a new form of normality. Notwithstanding, the technical results still delivered a satisfactory profit above expectations. Financial returns saw an improvement over 2020 but again do not include any receipt of dividend from MAPFRE MSV Life p.l.c., which like in 2020, will not be paying a dividend to further strengthen is Solvency position. In this regards, both MAPFRE Middlesea p.l.c. ad Bank of Valletta p.l.c., the shareholders of MAPFRE MSV Life p.l.c., have invested €20.00 million each in the share capital of the company in March 2021.
MAPFRE MSV Life p.l.c. had a very positive first half year with premium levels returning to near all-time highs. Financial markets continued to recover and the company reported a sound investment return contrary to the losses registered at the half-way mark of 2020. The With-Profits Fund increased by 1.6% as at June and 7.0% higher compared to June 2020.
Group’s gross premiums written have increased by 25.9% during the first six months of 2021. Turnover in General Business moved up by 7.5% with the major lines of business delivering higher volume levels. Life premium written soared over comparative figures by 31.4% reflecting the consumer confidence in our brand, with strong levels of reinvestment of maturities and new business.
The Group is compliant with the regulatory capital requirements as stipulated by the MFSA which are in line with the Solvency II requirements and continues to maintain its healthy Solvency position as a result of the attained positive results.
The Group looks at the second half of 2021 with cautious optimism in an environment wary of the evolving effects of the pandemic both on the local and global economies. Focus remains on the Group’s strategic actions to meet its set Key Performance Indicators, continue delivering improved results to its shareholders whilst improving efficiency and client satisfaction in line with its mission of being the most trusted insurer.
In line with Company policy, the Board of Directors did not propose to pay an interim dividend for the half year ended 30 June 2021 .