Middlesea posts 64 per cent rise in pre-tax profits

The Middlesea Group yesterday announced an increase of 64 per cent in pre-tax profits for the half year ended June 30 when compared to the results obtained for the corresponding period in 2003.

The Group's total profit on ordinary activities before tax amounted to Lm1.27 million.

The Group said its strategy for growth in the primary insurance market through a controlled expansion programme in the Euro-Med region was evidenced by the continued increase of 11.4 per cent in gross premiums written, locally and overseas, of Lm19.1 million.

The Group's profit from Middlesea Valletta Life Assurance Co. Ltd (MSV), the specialist life company of the Group, was Lm371,110 (June 2003 - Lm566,532). MSV registered further growth of 25 per cent in the total premium written to reach Lm15.1 million for the six-month period. Total assets increased by 12.8 per cent to Lm160.2 million.

The Group's strategy of expansion in overseas primary markets through its investment in the Italian subsidiary Progress Assicurazioni SpA continued to impact favourably on its results. This company registered a nine per cent increase in premiums, which totalled Lm11.5 million. This represented 60 per cent of the Group's total turnover from annual business thereby underlining the importance of this subsidiary.

Progress Assicurazioni SpA contributed a net profit of Lm0.24 million before taxation but after minority interest (June 2003 - Lm0.12 million).

The Group's balance sheet was further strengthened in the first half year when total assets increased by five per cent to Lm98.4 million. The earnings per 50c share increased to 6c9 for the half year.

The retained profits after taxation generated during the period, the overall improvement in the market value of investments and the Group's share of the increase in the value of in-force business of Middlesea Valletta Life positively affected the net asset value which increased by 6c to Lm1.81 per share.