The Board of Middlesea Insurance said this evening that while the accounts for financial year 2008 were still subject to finalisation and audit, the board expected that the consolidated results for the year would be below expectations.

The board in a company statement referred to an announcement it made on November 5 where it stated that the unprecedented volatility in the international and local capital markets presented challenges to the Group, and that in the absence of a material change in market sentiment, it was expected that the positive technical performance would be outweighed by the negative investment result for the financial year.

Negative sentiment and volatility in the capital markets had continued through the financial year which ended on December 31, and beyond.

"Furthermore, preliminary results have indicated a material deterioration in the technical performance of a certain class of business during the last quarter of FY2008. Whereas the accounts for FY2008 are still subject to finalisation and audit, the Board of Directors expects that due to the above factors, the consolidated results for the year will be below expectations," the board said.