Middlesea reports €55.2m loss
Middlesea Insurance said today that it made a loss of €55.2 million in the year which ended on December 31, its performance having been negatively affected by the losses made by its Italian subsidiary Progress Assicurazzioni spa. The figure is inclusive of the impairment charge on Progress of €63.1m. Middlesea made a loss of €20.6m in 2008.
"During the first part of 2010 important steps were undertaken in connection with this subsidiary with the result that Middlesea Insurance has now put Progress and its losses behind it," the Group said.
"The Board is also advised that as Middlesea has fully paid up the amount of share capital in Progress underwritten by it, no further payments can be requested from Middlesea shareholders," it added.
The domestc operations of the group, generated a total profit before tax and impairment charges of €8.7 million last year, compared to a loss of €2.98 million in 2008, Middlesea said.
"Notwithstanding the substantial loss taken by the group on Progress, Middlesea remains a financially strong company with shareholders' equity at December 31 2009 of over €48 million on a consolidated basis," Middlesea said.
It said that Middlesea Valletta Life Assurance, which is an associate company, reported a considerable increase in profitability during 2009.The group's share of profit from this company amounted to €3.1 million compared to €0.96 million in 2008.
Chairman Joseph FX Zahra said the loss was bad news but the good news was that Progress Assicurazzioni was history.
The shareholders had backed the company even through the bad times and although the number of small shareholders had gone down from 39 to 18 per cent, there was an increase in the institutional shareholders from 61 to 82 per cent.
Mr Zahra said that forecasts for this year were positive. He said that investigations into Progress Assicurazzioni were still ongoing but they werein the hands of the liquidator. Malta, he said, was still under insured.
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EDWIN DE MARCO
Apr 28th 2010, 09:48
I think our MEP economist should tell us what really happened..
R.Farrugia
Apr 27th 2010, 22:17
These are 2009 results and we're almost in May 2010. Months have passed since 31st December 2009 where a radical change took place.
Policyholders need not worry as these 55million have already been paid up without affecting pending policies. Progress books are closed and therefore one expects that Middle Sea will register a profit in 2010, even in its first quarter.
Alfred Gatt
Apr 27th 2010, 21:35
As always happens, the bad times are only remembered. What about the many years of good profit that it gave! The position has now been addresssed, and the Italian Company is no longer part of Middlesea. Middlesea Insurance still remains a very strong company as it always was. Policyholders need not fear and if any of the policyholders is displeased with any of its services, there is the Complaints Procedures (in both the English and Maltese languages) in all its policy documents.
Anthony E Portelli
Apr 27th 2010, 21:23
Amateurs?
Ludwig Flask
Apr 27th 2010, 21:13
How will this loss affect the investment return from the life insurance with profit maturing in the next 5, 10 , 15 or 20 years?
Louis Gatt
Apr 27th 2010, 20:14
The Financial Authorities should order an investigation into this enormous loss for the the Maltese Nation. How and why did the loss escalate to such an astronomic figure before any action was taken. This is no joke, and the Authorities should ensure that whoever was responsible for such a 'blunder' should be identified and investigated. This is the only way that credibility may be restored in local stock and investment. Tax payers have a right for transparency.
Charles Massa
Apr 27th 2010, 19:13
Who was responsible in investing millions in Progress ASS spa. Is he still an employee of the group. It seems that in Malta every one goes scot free for their mistakes which cost the company in substantial losses. The fact that the company is financially strong is not an excuse. It would have been much healthier if such losses have not been incurred
J.Pace
Apr 27th 2010, 19:11
If Middlesea Valletta Life Assurance reported a profit in this, are we going to be rewarded, or it is going to make for the other losses ?
J Grima
Apr 27th 2010, 18:19
Middlesea won't make good for their losses by increasing anyone's premium - that's close to ridiculous. There are manoeuvres which the article says have already been made to compensate for the losses and there is no mention of increased premiums.
Aldo Busuttil
Apr 27th 2010, 17:26
I hope that this loss will not effect any policies we have... Somehow the losses have to be made good for... They will charge us something extra (office charges or some type of tax). Let us wait and see...
I Vella
Apr 27th 2010, 17:20
A couple of years ago I had a very bad experience with middlesea and their customer care service was awful so I think that they brought this up with their hands.
@Joe Debono - why should you worry? if they register a loss it's their business!! they aren't going to take your car, business or home!!
a-j galea
Apr 27th 2010, 20:09
Me too. Haqqhom. I have taken my business elsewhere and I'm happy, very happy with their competition.
Joe Debono
Apr 27th 2010, 17:04
Should we worry ?
We have our home, cars, business and life insured there ?
I think we shoudl worry !!!!!! :(