Middlesea pre-tax profits up 79 per cent

Middlesea Insurance plc (MSI) has registered an operating profit before tax of Lm6.51 million for the year ended December 31, 2005 - an increase of 79 per cent over 2004, the company said in a statement.

MSI Group chairman Mario C. Grech said it was mainly the result of the strong technical performance registered across all business activities by all companies within the Middlesea Group, which included a favourable run-off in incurred claims, a strong investment return from capital markets (particularly in the domestic market), the implementation of revised International Financial Reporting Standards (IFRSs) and the company's focus on improving cost efficiency.

The board of directors has agreed that, in line with the company's dividend policy that ensures the enhancement of its balance sheet and future sustainability, they would recommend the payment of a final dividend of seven cents per share, totalling Lm875,000, an increase of 17 per cent over last year.

In addition, to mark Middlesea's 25th anniversary, a special dividend of three cents per share (totalling an additional Lm375,000) was also being recommended.

The board of directors is also recommending a share split, whereby each share of nominal value 50 cents share will be split into two shares of 25 cents each.

Shareholders' funds (including MSI's share of the embedded value in Middlesea Valletta Life) grew to Lm30.95 million. The net asset value per share increased to Lm2.48 and the earnings per share went up by 81 per cent to 38c5. Total group assets increased by almost six per cent to Lm108.4 million.

Meanwhile, the Italian subsidiary Progress Assicurazioni SpA consolidated its position and, through its pursuance of a strict pricing policy in 2005, booked a gross premium of Lm19.9 million.

International Insurance Management Services (IIMS) continued to project Malta's efforts to attract international companies. Malta's accession to the EU has triggered considerable interest from international companies in the Maltese financial centre, which has over the years established itself as an attractive jurisdiction in the EuroMed region, the company said.

In 2005, Middlesea's associate Middlesea Valletta Life Assurance Company (MSVL) continued with its success story, increasing its competitive advantage through its varied distribution network. Business generated, including non-participating contracts, increased to Lm39.3 million. MSVL contributed positively to the group's overall result, with a share of profit after tax of Lm1.16 million.