Middlesea Group announces management appointments
Middlesea Group has made a number of changes to its top managers, appointing two chief executive officers for its subsidiaries, and has also changed Mario Grech's title to executive chairman of the group, as opposed to chairman and chief executive...
Middlesea Group has made a number of changes to its top managers, appointing two chief executive officers for its subsidiaries, and has also changed Mario Grech's title to executive chairman of the group, as opposed to chairman and chief executive officer. Mr Grech said that the appointments were the first phase of the restructuring programme based on succession planning and that a further review would be undertaken within two or three years.
"I think that the appointments are a clear signal of the direction in which we are heading," he said. "Of course it will be up to the major shareholders to decide on the final direction.
"We certainly do not want there to be any shocks. We want a smooth approach that will ensure continuity."
Mr Grech had previously defended his dual role at Middlesea, which was one of only a handful of companies to have a joint chairman and CEO. This practice goes against the recommendations of the Malta Financial Services Authority's corporate governance guidelines issued last year.
However, with no CEO being appointed to Middlesea, is it just a change in name?
"I was made the joint chairman and CEO in 1994, a crucial time for the group, which was restructuring its entire business, moving from reinsurance to an insurance group. When the recommendations were issued last year I had commented that knowledge did not grow on trees but knowledge does grow with time.
"I felt and still feel that this particular guideline should not be made mandatory but should be based on the principle that you should 'comply or explain' to your shareholders.
"I was asked by the board to prepare a report on the appointments, which I duly did, sending it to the board as well as to the MFSA for its approval. These appointments are the result of that process.
"The time will come when a CEO will be appointed to Middlesea Insurance and we will then need to see whether I stay on in a non-executive role," the 57-year-old said.
"I cannot make any forecasts because it depends on where the organisation and I myself are at that time. All I can say is that this is not a bridge that we need to cross today. The important thing is that there is enough space in which decisions can be made."
Mr Grech is now executive chairman of Middlesea Insurance plc and chairman of the group's executive committee. As executive chairman, he has assumed a more strategic and focused role through the group executive committee concentrating on business development, reinsurance, finance, investments and overall coordination. Mr Grech will be assisted by Joseph Rizzo, who has now been promoted to chief operations officer from his previous role as general manager.
Stephen Gauci has been appointed chief executive officer of Progress Assicurazioni SpA, promoted from general manager. This company is the second largest in the group, handling €55 million in Italy. Since 2000, the focus was on southern Italy but he said that the company would now look north.
"Within three to five years, we are looking at a significantly larger volume. This will also be done by reducing the motor third-party in our portfolio and increasing other non-life business like fire and household.
"We will do this through partnerships, which have the added benefit of keeping costs controlled," he said.
David Curmi has been appointed chief executive officer of Middlesea Valletta Life Assurance Co Ltd. Until recently he occupied the post of general manager. He is also the CEO and a director of Growth Investments Ltd, a wholly-owned subsidiary of MSV. Mr Curmi is also president of the Malta Insurance Association.
"Our size now poses a challenge as we have 65 per cent of the life insurance market in Malta and cannot continue to grow at the same rate. We need to look overseas, with Italy being our first target, its €56 billion market being the third largest in Europe.
"We will at first operate under the freedom of services principle but in the long term we will either open branches or acquire opportunities there. Without an internationally recognisable brand, the problem is distribution so we have to keep our eyes open for partnerships.
"We also need to create new demand locally through new products, rather than run after our competitors' business."
The group has also appointed Anne Marie Tabone as chief financial officer of the Middlesea Group. Ms Tabone has held a number of key senior executive positions within the group, the most recent being that of general manager of International Insurance Management Services Ltd, a wholly owned subsidiary of Middlesea Insurance plc, which role she will retain.
"This subsidiary is not considered large enough to merit a CEO yet but she will have quite an exciting challenge as the CFO for the whole group," Mr Grech said.
The group has also appointed three chief officers: Marzena Formosa (Group Investments); Elizabeth Carbonaro (Group Finance); and Bernard Fenech (Group IT).
"These senior appointments will ensure a smooth transition for the future development of all the companies within the Middlesea Group. These changes, which fall in line with Middlesea Group's strategy, should ensure that an adequate breadth and depth of management skills remain available; this would empower the management team to further develop the Group both in Malta and more importantly, overseas," Mr Grech said in the company's official press release.
"I think that the appointments are a clear signal of the direction in which we are heading," he said. "Of course it will be up to the major shareholders to decide on the final direction.
"We certainly do not want there to be any shocks. We want a smooth approach that will ensure continuity."
Mr Grech had previously defended his dual role at Middlesea, which was one of only a handful of companies to have a joint chairman and CEO. This practice goes against the recommendations of the Malta Financial Services Authority's corporate governance guidelines issued last year.
However, with no CEO being appointed to Middlesea, is it just a change in name?
"I was made the joint chairman and CEO in 1994, a crucial time for the group, which was restructuring its entire business, moving from reinsurance to an insurance group. When the recommendations were issued last year I had commented that knowledge did not grow on trees but knowledge does grow with time.
"I felt and still feel that this particular guideline should not be made mandatory but should be based on the principle that you should 'comply or explain' to your shareholders.
"I was asked by the board to prepare a report on the appointments, which I duly did, sending it to the board as well as to the MFSA for its approval. These appointments are the result of that process.
"The time will come when a CEO will be appointed to Middlesea Insurance and we will then need to see whether I stay on in a non-executive role," the 57-year-old said.
"I cannot make any forecasts because it depends on where the organisation and I myself are at that time. All I can say is that this is not a bridge that we need to cross today. The important thing is that there is enough space in which decisions can be made."
Mr Grech is now executive chairman of Middlesea Insurance plc and chairman of the group's executive committee. As executive chairman, he has assumed a more strategic and focused role through the group executive committee concentrating on business development, reinsurance, finance, investments and overall coordination. Mr Grech will be assisted by Joseph Rizzo, who has now been promoted to chief operations officer from his previous role as general manager.
Stephen Gauci has been appointed chief executive officer of Progress Assicurazioni SpA, promoted from general manager. This company is the second largest in the group, handling €55 million in Italy. Since 2000, the focus was on southern Italy but he said that the company would now look north.
"Within three to five years, we are looking at a significantly larger volume. This will also be done by reducing the motor third-party in our portfolio and increasing other non-life business like fire and household.
"We will do this through partnerships, which have the added benefit of keeping costs controlled," he said.
David Curmi has been appointed chief executive officer of Middlesea Valletta Life Assurance Co Ltd. Until recently he occupied the post of general manager. He is also the CEO and a director of Growth Investments Ltd, a wholly-owned subsidiary of MSV. Mr Curmi is also president of the Malta Insurance Association.
"Our size now poses a challenge as we have 65 per cent of the life insurance market in Malta and cannot continue to grow at the same rate. We need to look overseas, with Italy being our first target, its €56 billion market being the third largest in Europe.
"We will at first operate under the freedom of services principle but in the long term we will either open branches or acquire opportunities there. Without an internationally recognisable brand, the problem is distribution so we have to keep our eyes open for partnerships.
"We also need to create new demand locally through new products, rather than run after our competitors' business."
The group has also appointed Anne Marie Tabone as chief financial officer of the Middlesea Group. Ms Tabone has held a number of key senior executive positions within the group, the most recent being that of general manager of International Insurance Management Services Ltd, a wholly owned subsidiary of Middlesea Insurance plc, which role she will retain.
"This subsidiary is not considered large enough to merit a CEO yet but she will have quite an exciting challenge as the CFO for the whole group," Mr Grech said.
The group has also appointed three chief officers: Marzena Formosa (Group Investments); Elizabeth Carbonaro (Group Finance); and Bernard Fenech (Group IT).
"These senior appointments will ensure a smooth transition for the future development of all the companies within the Middlesea Group. These changes, which fall in line with Middlesea Group's strategy, should ensure that an adequate breadth and depth of management skills remain available; this would empower the management team to further develop the Group both in Malta and more importantly, overseas," Mr Grech said in the company's official press release.