Middlesea Group registered a profit before taxation of €2.8 million for the period, as compared to a loss of €5.3 million during the first quarter of the previous year, the group said this week.

"The improvement in the technical results of the insurance operations of Middlesea Insurance plc, the turnaround of the capital markets, together with the discontinuance of the operations of the Italian subsidiary (losses from this subsidiary for the first quarter of 2009 amounted to €3 million) have all been important contributing factors to the improved first quarter 2010 results," Middlesea Group said in a statement.

Associate company Middlesea Valletta Life Assurance Co. Ltd also had an "encouraging" first quarter, with profits after taxation for the period of €2 million (March 2009: loss of €3.3 million), 50 per cent of which have been accounted for in the group results.

The company said Middlesea Insurance plc's balance sheet was further strengthened during the period under consideration by the profits generated. Subsequent to the end of the quarter, Middlesea Insurance plc concluded the implementation of measures agreed with the regulator over its regulatory solvency position.

The implementation of these measures restored the company's regulatory capital position to the level required by the Malta Financial Services Authority.

"Middlesea is a strong company with an excellent client base and has a dedicated and talented executive team," chairman Joseph F.X. Zahra said.

"The relationships with our local clients remain at the heart of our ability to create value for our shareholders. The renewals we have secured in 2010 to date, and our ability to maintain our market position, even during very difficult times, demonstrate the strength of these relationships and the quality of our people - and our priority will be to build further on these relationships with an unparalleled level of client service."