Middlesea said that a positive performance by all the companies within the group contributed to a 40 per cent increase in net pre-tax profits in the first half of this year.
The group said net pre-tax profits as of June 30 stood at Lm2.15 million, as against Lm1.54 million in the same period last year.
Middlesea said the group continued to enhance the pricing policy, together with stricter underwriting guidelines and a continuous drive to achieve a desirable portfolio business mix. This resulted in a decrease of 6.6 per cent in premium income; the anticipated reduction coming from Progress Assicurazioni SpA and Gibraltar, though business written locally assisted in mitigating this.
The positive effect of this underwriting strategy was reflected in the technical performance (general and group life) with an underwriting profit of Lm1.4 million as compared to Lm1.1 million generated during the same period last year. The positive returns generated on the group's investment portfolio, also contributed to the overall improvement in results.
The group's confidence in the Italian subsidiary was further demonstrated in July 2005 when Middlesea Insurance plc accepted an offer to purchase 38.97 per cent of the shares in Progress Assicurazioni held by Corporacion Mapfre Compania Internacional De Reaseguros SA. The Middlesea Group now owns 99.97 per cent of the shares of this Italian subsidiary.
Middlesea Valletta Life, the group's specialist life associate company, registered a further growth of 21 per cent in the total business written, to register Lm18.2 million for the period under review.
An interim valuation carried out by the company's independent actuaries showed that the life fund and other technical provisions were further strengthened by 13.7 per cent to Lm185.4 million.
The group's share of the surplus attributable to shareholders in the six-month period was Lm0.40 million.
The board of directors did not propose to pay an interim dividend in respect of the first six months of operations, as was the case a year earlier.
Middlesea Group consists of Middlesea Insurance plc, Middlesea Valletta Life Assurance Co. Ltd, Progress Assicurazioni SpA, International Insurance Management Services Ltd, Growth Investments Ltd and Malta International Training Centre.