Mapfre Middlesea registers profit before tax of €11.65m in 2016
The Board of Directors of Mapfre Middlesea has announced that the Total Group profit before tax for the year 2016 amounted to €11.65m as compared to €17.84m during the previous year with after tax profits at €8.93m compared to €11.87m in 2015.
2015 Group results were influenced by a one-off gain of pre-tax €5.05m arising as a result of a major restructuring of Mapfre MSV Life’s reinsurance programme as from 2015.
The standalone company registered a turnover of €60.01m in gross premium written, a 23% increase over FY2015 and strengthening market leadership having a 34.01% market share based on preliminary market statistics.
Technical results were subdued due to a deteriorating motor combined ratio. Investment income going to profit and loss increased as a result of higher fair value movements particularly on the property portfolio.
With dividends from Group companies reducing slightly to €2.67m compared to €2.84m in 2015, the company registered a profit before tax for FY2016 amounting to €2.48m, compared to a profit of €5.07m in FY2015. Profit after tax reduced from €4.64m in FY2015 to €2.60m in FY2016.
The Group’s results include the consolidated Mapfre MSV Life profit before tax of €11.55m (2015: €15.58m). MSV reported a turnover (including investment contracts without DPF) of €274.5m compared to €224.46m in 2015 as a result of increases in demand across all products in particular single premium savings contracts and life protection business.
Equity and bond markets produced robust yet somewhat weaker returns than those generated in the prior year with net investment income decreasing from €91.2m in 2015 to €78.1m in 2016. The profit after tax consolidated for FY2016 amounted to €8.59m (2015: € €10.1m).
Total Group capital and reserves attributable to shareholders (excluding non-controlling interests) at 31 December 2016 was €86.83m, compared to €82.3m as at 31 December 2015.
The company maintained a strong balance sheet, with its Shareholders’ equity amounting to €62.10m still maintaining a strong regulatory solvency position as at 31 December 2016 under the new Solvency II regime.
A gross dividend in respect of year ended 31 December 2016 of €0.03826 per share amounting to a total dividend of €3,520,000 (2015: €5,156,715) is to be proposed by the directors at the forthcoming annual general meeting. This is equivalent to a net dividend of €0.03826 per share amounting to a total net dividend of €3,520,000 (2015: €3,520,000)
The Board with a clear strategy to return to a strong technical profit, while aware of the challenges that are inherent, looks forward with optimism to 2017.
The company will continue with the project, in conjunction with companies forming part of the Mapfre Group for the implementation of the new insurance IT system and envisage the rollout of further products on such system in the coming year. The net book value as at 31 December 2016 of this system amounts to €2.98m.