The Mapfre Middlesea offices in Floriana. Photo: Mark Zammit Cordina

Mapfre Middlesea Group made a pre-tax profit before tax of €15.18 million in the first six months of 2015, compared to €8.21 million in the same period last year.

All group companies registered improved results with the main driver being the group’s life operations with MSV Life plc registering higher profits than the comparative period last year, mainly resulting from a one-off saving from renegotiation of the reinsurance treaty.

The group’s gross premiums written increased by 49.4 per cent during the first six month of 2015 while the general business turnover continued to register important growth in excess of market performance with an increase of 15.1 per cent.

“The competitive environment we operate in and the price pressures to maintain or acquire business makes this growth rate a significant one,” the group said in its interim report.

Life premiums written increased by 58.8 per cent thus having the major impact on the increased volume of business of the group.

The group continues to enjoy a healthy solvency position as a result of the attained positive results

“Following an outstanding performance during the initial months of the year, worries about the Greek debt default caused markets to retract sharply during the last two months. Bond yields have returned to the levels as at the end of 2014 following the downturns experienced earlier in the year.

Notwithstanding this, the investment portfolios registered higher returns when compared to June 2014 particularly those of MSV Life.

The positive performance of the MSE Index, during the period, resulted in positive movements on the holding company portfolio which had registered losses during the same period in 2014.

The group continues to enjoy a healthy solvency position as a result of the attained positive results,” it said.

The group said it was confident that it would achieve its targets for the year, noting that the portfolio transfer from Allcare Insurance, currently in the final stages, would increase the market share of the company leading to optimisation of available capital.

In line with company policy, the board of directors do not propose to pay an interim dividend.