Middlesea Insurance plc said today that it made a profit before tax of €8.86 million last year, compared to a loss of €62.88 million in financial year 2009.
The Middlesea Group saw a profit before tax of €6.44million against the loss of €54.4million on the consolidated accounts for 2009.
Middlesea Insurance chairman Joseph FX Zahra said that 2010 was crucial in taking the company forward. Focus was re-set on local operations to consolidate and improve upon Middlesea’s leadership position in the Maltese market.
The group’s main operating companies were realigned as stand alone, autonomous companies, each focussing on core domestic operations.
While registering an increase in premiums of 4.9 per cent and recording satisfactory profits, Middlesea Insurance plc also strengthened its balance sheet and improved its regulatory solvency position with shareholders’ equity amounting to €54.9 million as at December 31 on a consolidated basis.
At the same time MSV Life plc, a jointly controlled company with Bank of Valletta plc, registered a record year of turnover, with total premiums for the year increasing by 18.3 per cent to €147.49 million and total comprehensive income of €9.65 million.
MSV Life which further consolidated its position increasing its total assets to €1.1 billion, and currently boasts Shareholders’ Equity of €108.89 million and a base of more than 83,500 customers.
Progress Assicurazioni SpA, the subsidiary company of Middlesea Insurance plc is in liquidation and in February an application was made by the liquidator to the Italian courts in Palermo, requesting that the bankruptcy of the company be ascertained and declared as such by the court.
This is a normal procedure..
“Notwithstadning the satisfactory profits registered during the year, the board of directors cannot and is not recommending the payment of a dividend, due to accumulated losses on the profit and loss a/c arising from the adverse results registered by Progress Assicurazioni SpA over the last two financial years - with such a position on the profit and loss a/c the provisions of the Companies Act prohibit the ability of the company to declare a dividend” Mr Zahra said.
To restore the company’s potential to declare prudent dividends, during the upcoming annual general meeting of May 3, the board will be recommending a solution that is contemplated directly by the Companies Act, involving the offsetting of accumulated losses against the issued share capital and share premium account of the company. This will have no impact on the Shareholders’ Funds and the Net Asset Value of the company.
Middlesea Insurance plc will seek to bolster its position in Malta and improve its existing leading position in the local market.
“We will pursue this strategic vision with resolve and also with the help of our industry institutional shareholders, Mapfre Internacional.
The drivers will include customer-centricity, product innovation, efficiency and cost rationalisation,” emphasised Mr Zahra.
Reflecting on a satisfactory year the chairman expressed his gratitude to his fellow directors, management and employees, thanking the growing base of customers for their loyalty and custom, and expressed appreciation for the resilient support and trust of the shareholders, and for their strong belief in the capabilities of the company.