Middlesea reports profitable first quarter

Middlesea Insurance has reported a pre-tax profit of €2.8 million for the first quarter of this year, as compared to a loss of €5.3 million during the first quarter of 2009.

"The improvement in the technical results of the insurance operations of Middlesea Insurance plc, the turnaround of the capital markets, together with the discontinuance of the operations of the Italian subsidiary (losses from this subsidiary for the first quarter of 2009 amounted to €3 million) have all been important contributing factors to the improved first quarter 2010 results," Middlesea said.

It added that subsequent to the end of the quarter, Middlesea Insurance plc concluded the implementation of measures agreed with the Regulator with respect to its regulatory solvency position. The implementation of these measures restored the regulatory capital position of the company to the level required by the Malta Financial Services Authority. The company is therefore, once again, fully compliant with the relevant solvency and capital regulatory requirements.

Middlesea 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 was inclusive of the impairment charge on Progress of €63.1m. Middlesea made a loss of €20.6m in 2008.