Middlesea has announced a group profit before tax of €17.30 million for the year ended December 31.
A gross dividend of 4c5 per share amounting to a total dividend of €4,140,222 (2012: €2,300,000) is to be proposed by the directors at the forthcoming annual general meeting. This is equivalent to a net dividend of 3c826 per share amounting to a total net dividend of €3,520,000 (2012: €1,745,000).
The group’s results include the consolidated MSV Life results of €15.48 million (2012: €15.98 million). MSV reported a turnover of €111.32 million compared to €87.31 million in 2012 as a result of increases across various classes of protection business and stronger single premium business.
The resilience and upturn in equity and bond markets kept revenue patterns similar to 2012 with net investment income increasing from €95.44 million in 2012 to €98.19 million in 2013.
In the previous year there was a one-off deferred tax gain whereby all unutilised tax amounts available for relief against future taxable income in terms of the applicable law were recognised. Last year, the MSV Group recorded an after-tax profit of €9.85 million for the year.
The company said in a statement that the year was a satisfactory one for holding company, Middlesea Insurance.
Gross profit before tax amounted to €5.90 million including dividends from subsidiary companies of €4.09 million.
Pure technical results on local business (including Group Life) improved by 1.71 per cent and stood at €7.07 million compared to €6.95 million in the previous year.
Investment income reduced due to lower fair value movement particularly on the property portfolio and negatively influenced by currency movements.
The board expressed satisfaction with the results saying they confirmed that an 11.2 per cent reduction in gross premiums written by the parent company, following the termination of one of the main agency agreements (which in 2012 underwrote 18.4 per cent of MSI’s portfolio) in the beginning of the year, did not have a big impact on the group’s profitability.
In financial year 2012, the Middlesea Group had registered a profit of €18.01 million.
During the year the Company consolidated its balance sheet, increasing its shareholders’ equity to €60.84 million while maintaining a strong regulatory solvency position as at December 31 of 515 per cent on its general business, when compared to the minimum regulatory requirement of 150 per cent.