Insurance group Globalcapital p.l.c. saw its pre-tax profits soar to €5.6 million in 2015 following profits of €800,000 in 2014.
This is the second consecutive year that the Group registered a full year profit before tax, a statement issued by the group noted. The turnaround had come following an aggressive transformation strategy, from the second half of 2014 onwards, to cut costs and achieve long-term financial stability and profitability.
Upon taking office in September 2015, the newly constituted Board of Directors immediately focused its efforts on various urgent initiatives with particular emphasis on putting in place a strategy and implementation plan for raising the necessary funding for the repayment of the Company’s bond.
Globalcapital's life insurance business registered significant growth in both the conventional and unit linked business, the group said. These efforts were complemented by a positive performance of the company’s investment and property portfolio totaling €7,368,021 which was partially compensated by an increase in technical reserves. The life company reported profits after tax of €4,417,615 compared to a prior year profit of €3,146,443. The increment in the value of in-force business for the year under review amounted to €1,355,385 (more than double 2014's €610,968 figure) which mainly reflects the higher volumes on profitable terms.
The group's health insurance agency, representing Bupa in Malta, once again registered a steady performance and healthy profitability. Revenues remained at levels similar to those generated in 2014 despite the competitive environment within which the health business is operating. Coupled with a reduction in operative costs, a marginal improvement in the health insurance agency’s overall performance was registered with a profit after taxation amounting to €740,194 compared to €574,328 in 2014.
The group's investment company reported a profit for the year of €95,197 compared to the 2014 loss of €464,224 – a turnaround of €559,421. The company’s revenue year-on-year decreased by 10 per cent which was more than offset by the significant decrease in operative costs. The company’s provisions for the year increased which adversely impacted the overall performance of the investment company.