Mapfre Middlesea chairman Martin Galea reported another successful year for the company during its annual general meeting which took place at the Corinthia Hotel.
Galea told shareholders that the company will be paying a dividend of €9 million compared to last year’s €9.7 million. He also reported that the company’s solvency and liquidity position remain very strong and all stakeholders can be confident that the company is in a good financial position.
The chairman reported that during the last 18 months the board of directors have been reviewing the capital requirements of Mapfre MSV Life, the life insurance subsidiary of Mapfre Middlesea which is owned jointly with Bank of Valletta. It was determined that the company had excess capital and a decision was taken to distribute a special dividend. This dividend, received in March, will be distributed to the company’s shareholders as a special interim dividend together with the ordinary final dividend.
Galea said that as far as the operations of the company are concerned, Mapfre Middlesea continues to perform well, in spite of very high claims. Last year was a record one for claims. Galea reported that €42.30m in claims were incurred during the year.
“This is our business. We take on the risks of our customers and pay the claim out when adverse circumstances occur,” he said. “Clients are helped when they need it, and would otherwise face financial hardship be it through accident, weather or health. We managed to maintain our profitability as we reinsure risks when our risk profile is exceeded. In this way we were able to contain the claims incurred and and indeed protect our profitability.”
President and CEO Felipe Navarro presented a full financial and operational report. He said that the company continues to invest in staff, governance as well as IT. Mapfre MSV Life continues to show record results primarily through sales of single premium investments. The company was able to maintain a relatively good return for its investors compared to the market, at a maximum 2.35 per cent in spite of the prevailing economic situation which militates against safer return seeking investments. The low interest rate scenario continues and presents a challenge to the company, indeed to all investors at this time.
Mapfre Internacional SA owns 54.56 per cent of the company – thus, in effect, Mapfre Middlesea plc and Mapfre MSV Life plc are both subsidiaries of the Mapfre Group. Being part of a global international insurance group means that both entities obtain great support and expertise in a number of areas. This would include training, technical support on underwriting and reserving, increased oversight and controls, technical actuarial assistance as well as assistance in dealing with new regulations especially with regard to Solvency II. Bank of Valletta owns 31.08 per cent of Mapfre Middlesea and is a significant shareholder in Mapfre MSV Life with 50 per cent.
During the AGM, the shareholders considered and approved the ordinary and extraordinary resolutions including the payment of a final net dividend of €0.0978261 and a net extraordinary interim dividend of €0.0869565 per share.
At the board meeting convened immediately after the AGM, Galea was appointed chairman of the board of directors of Mapfre Middlesea plc. The board of directors, during the said board meeting, also re-confirmed and co-opted Nikolaos Antimissaris, from Mapfre, as a non-executive director in accordance with the Articles of Association of the Company and appointed Daphne Sims Dodebier as the new company secretary to replace Carlo Farrugia who tendered his resignation.
Mapfre Middlesea p.l.c. (C-5553) and Mapfre MSV Life plc (C-15722) are authorised under the Insurance Business Act, Cap 403 of the Laws of Malta. Both entities are regulated by the MFSA.