MAPFRE Middlesea Group recorded €12.2 million in pre-tax profit during the first half of 2024 (1H 2024), representing a 25.4 per cent increase from the same period last year (€9.7 million).

This was highlighted in the group’s interim financial results for the six months ended 30th June 2024, released on Monday. The figures for June 2023 have been restated to reflect the contracts approved through IFRS 17, an international financial reporting standard which became effective from the start of 2023.

MAPFE Middlesea, a subsidiary of Spanish multinational firm MAPFRE, was established in 1981 as the first insurance company transacting general business in Malta.

During the reporting period, the group recorded an 8.8 per cent increase in general business gross premium written from €50.8 million in H1 2023 to €55.2 million in H1 2024.

Long-term gross business written amounted to €113.8 million, an increase of 12.4 per cent over the comparative period in 2023.

These figures signal strong growth in the group’s non-life business, with technical performance yielding an improved insurance service result over the past six months, particularly in the motor portfolio. MAPFRE Middlesea stated that this reflects the correction in pricing made over the past year when coupled with a contained claim frequency and claim cost average in line with the previous year.

The group said that large losses had a softer impact on the technical performance when compared to the same period in 2023. This was because the losses in H1 2023 primarily affected the motor portfolio, yet in H1 2024, they were spread over different classes of business.

MAPFRE Middlesea’s total assets increased marginally by 0.3 per cent to a total of €2.4 billion as at 30th June 2024.

The Board of Directors did not propose the payment of an interim dividend for H1 2024.

In terms of its life insurance wing, MAPFRE MSV Life plc, insurance and investment sales levels reached satisfactory growth levels in H1 2024. During the period, the company diversified its product suite with the aim of increasing its offering in a highly competitive market.

“Investment returns though positive were lower than the comparative gains that were derived from rallying markets,” the Directors said.

The Directors acknowledged that the group’s results are “satisfactory,” yet they look at the second half of 2024 “with cautious optimism.”

This is because it is heading towards completing a three-year strategic cycle and also to meet its set targets while being aware of the risks underlying the nature of its business and the effect this may have on its results.

“The group will focus in setting out its strategy for the upcoming three-year cycle with challenging key performance indicators aimed at constantly improving client experience through quality of service and operational efficiency, whilst maintaining an adequate return to our shareholders,” the Directors continued.