Middlesea Insurance plc yesterday announced a total group profit before tax of €3.1 million for the financial year ended December 31, 2011, compared to a profit of €6.4 million during the previous year.

“Financial year 2011 continued to be a stabilisation year for the company and the group. Focus was set on local operations in order to consolidate and improve upon Middlesea’s leadership position in the Maltese market. This delivered an improved pure technical result of €3 million as arising from local operations compared to €2.2 million registered during the previous year,” Middlesea said.

The group’s results include the share of MSV Life plc’s results as an associate (up to July 29, 2011) amounting to €1.6 million (2010: €3.9 million) and consolidated results before tax of €0.4 million (2010: nil).

Middlesea said its improved technical results were negatively impacted by a lower investment income due to subdued performance on the local market and lower dividends from group companies, the latter amounting to €0.7 million compared to €6.8 million in 2010.

The profit before tax generated by Middlesea for 2011 amounted to €1.8 million compared to a profit of €8.9 million in 2010.

The board of directors recommend the payment of a final net dividend of €598,000 equivalent to a gross dividend of €0.010 per share. The final dividend, if approved by the annual general meeting, will be paid on May 20 to shareholders.

Middlesea also announced that Martin Galea, who has been appointed non-executive director, would be nominated as chairman of the board during the company’s annual general meeting on April 20 following Joseph F.X. Zahra’s decision to step down from the post.

Mr Galea, an accountant by profession, is managing director of Joinwell Limited. He was previously a director at Malta Enterprise and president of the Federation of Industry.

Mr Galea replaces Michael Sparberg on the Middlesea board who resigned as a director last August.