Spanish insurance group now owns a fifth of Middlesea

Corporacion Mapfre of Spain has acquired a further 15.18% shareholding in Middlesea Insurance plc, taking its shareholding up to 20.66%.

Middlesea Insurance said in a statement that this was in line with its strategy to restructure its shareholding in preparation for its further expansion overseas with emphasis on the Euro-Mediterranean region.

Mapfre bought Air Malta plc's 7.33% shareholding and the Malta Government 7.85% shareholding in Middlesea Insurance, though the Government still holds a 7.93% shareholding.

Mario C. Grech, chairman and CEO of Middlesea Insurance, said the relationship between Middlesea and Mapfre started when Corporación Mapfre SA, formed part of the panel of reinsurers used by Middlesea.

The importance of evolving this relationship into a partnership took fruition on September 28, 2000, when the purchase of 51% of the share capital of Progress Assicurazioni SpA was completed by Middlesea through the purchase of shares from Mapfre.

Agreement was reached between Middlesea Insurance and Mapfre that Middlesea will acquire the remaining 39% shareholding in Progress Assicurazioni SpA from Mapfre. This will bring Middlesea Insurance's shareholding in Progress to 90% with Middlesea Valletta Life owning the remaining 10%.

Mr D. Sugranyes Bickel, vice-chairman and CEO of Corporación Mapfre, said that as a policy, Mapfre sought to have equity in the holding company rather than in subsidiary group companies. Thus they were never averse to having a higher involvement in Middlesea Insurance plc.

This step dovetailed with the shareholding of the company and the emphasis that growth could only come from outside of Malta, especially having strategic partners like Corporación Mapfre, Munich Re and Assicurazioni Generali.

This development has facilitated Middlesea Insurance into becoming a fully fledged financial organisation with Bank of Valletta plc owning 21.65%, Mapfre 20.66%, Munich Reinsurance Co. 12.73%, the Government 7.93%, HSBC Bank Malta plc as custodian/subcustodian 5.64%, Assicurazioni Generali SpA 4.67%, Swiss Re Italia SpA 1% and the public 33.65%.

Corporación Mapfre SA is the holding company of a group of insurance, reinsurance, fund management and service companies, ranking as the largest insurance group in Spain and one of the largest insurance groups in Latin America. At the end of September, it had a premium income of E5 billion and a net profit of €135.1 million.