Mapfre Middlesea Plc — Report Publication Announcement 2019

Mar 13, 2019

Registered address Mapfre Middlesea p. . c., Middle Sea House, Floriana FRN 1442, Malta Postal address P.O. Box 337 Marsa, MRS 1000, Malta T +356 2124 6262 mapfre@middlesea.com middlesea.com Registration Number: C5553

MMS/CF/MSE00319

13 March 2019

The following is a Company Announcement issued by MAPFRE Middlesea p.l.c., pursuant to the Listing Rules of the Listing Authority.

Ouote

The Board of Directors of MAPFRE Middlesea p.l.c., has today, the 13 March 2019, approved the audited financial statements for the financial year ended 31 December 2018. The Board resolved that these audited financial statements be submitted for the approval of the Shareholders at the forthcoming Annual General Meeting (AGM) scheduled for Friday 26 April 2019. A preliminary statement of the annual results is being attached herewith in terms of the Listing Rules. Shareholders on the Company's register at the Central Securities Depositary of the Malta Stock Exchange as at close of business on Tuesday 26 March 2019 (the record date), will receive notice of the AGM together with a copy of the Annual Report and Financial Statements for the year ended 31 December 2018. The Audited Financial Statements will be available for viewing on the Company's website as from 14 March 2019 at https://www.middlesea.com/insurance-mt/about-us/investors/.

The Board of Directors recommends, for the approval of the AGM, the payment of a final net dividend of €9,000,000 (2017 - €9,700,000) equivalent to a gross dividend of €0.11531 per share (2017 - €0.11304). The final dividend, if approved at the AGM, will be paid on the 22 May 2019 to the Shareholders on the Company's share register at the Central Securities Depository of the Malta Stock Exchange at the close of business as at the 3 May 2019.

The Board will also recommend the payment of a special net dividend amounting to €8,000,000 equivalent to a gross dividend of €0.08696 per share. This special dividend results from a dividend to be distributed by the subsidiary MAPFRE MSV Life p.l.c. from past years retained earnings. This dividend, if approved at the AGM, will be paid on the 22 May 2019 to the Shareholders on the Company's share register at the Central Securities Depository of the Malta Stock Exchange at the close of business as at the 3 May 2019.

Unquote

By Order of the Board

Carlo Farrugia Company Secretary

Financial Highlights as at the 31 December 2018

Financial highlights of the results for the year ended 31 December 2018 include the following: -

· Total Group profit before tax for the year amounted to €18.56 million as compared to €17.71 million during the previous year with after tax profits at €14.04 million compared to €13.52 million in 2017.

MAPFRE Middlesea p.l.c., as a standalone Company, registered a turnover of €69.69 million in gross premium written, a 12.5% increase over FY2017 registering a marginal increase in its market leadership share. Technical results remained strong notwithstanding experiencing the worst Motor claim in the history of the Maltese insurance market. Investment Income saw a decline through low yields and negative fair value movements from financial markets. With dividends from Group companies marginally reducing to €6.84 million compared to €7.08 million in 2017, the Company registered a profit before tax for FY 2018 amounting to €11.42 million, compared to a profit of €12.17 million in FY 2017. Profit after tax decreased from €10.34 million in FY 2017 to €9.43 million in FY 2018.

• · The Group's results include the consolidated MAPFRE MSV Life p.l.c. ("MMSV") profit before tax of €13.70 million (2017: €12.31 million). MMSV reported a turnover (including investment contracts without DPF) of €322.72 million compared to €291.46 million in 2017 as a result of increases in demand across all products in particular single premium savings contracts and life protection business. With all the major investment asset classes experiencing negative returns a negative investment income of €43.3 million was registered compared to an income of €66.4 million in 2017. The profit after tax consolidated for FY 2018 amounted to €10.88 million (2017: € €10.02 million).
• · Total Group capital and reserves attributable to shareholders (excluding non-controlling interests) as at 31 December 2018 was €91.67 million, compared to €92.88 million as at 31 December 2017.

The Company maintained a strong balance sheet, with its Shareholders' equity amounting to E68.31 million still maintaining a strong regulatory solvency position as at 31 December 2018 under the Solvency II regime.

A gross dividend in respect of year ended 31 December 2018 of €0.11531 per share amounting to a total dividend of €10,608,738 (2017: €10,400,000) is to be proposed by the directors at the forthcoming annual general meeting. This is equivalent to a net dividend of E0.09783 per share amounting to a total net dividend of €9,000,000 (2017: €9,700,000).

MAPFRE MSV Life p.l.c. have declared, in their AGM held on the 5 March 2019, a net dividend payment of €16.35 million from past retained earnings of which half will be income for MAPFRE Middlesea p.l.c. in 2019. Although not forming part of the Company's distributable profits as at 31 December 2018, the Board of Directors has today ratified a resolution to propose for approval at the forthcoming annual general meeting the payment of such distribution by way of a special interim dividend on a gross and net basis of €0.08696 per share to a total net dividend of €8,000,000.

The Board outlook for 2019 is one of cautious optimism where the demand for general business is expected to continue to grow while the demand for the protection savings and investments products in life is expected to remain strong.

The Company will continue to maintain strong focus on its customers through the implementation of a number of initiatives to strengthen further the digital platform and widen the digital marketing strategy.

Notice is hereby given that Tuesday, 26 March 2019 is the "record date" for the purposes of Article 53 (2) (b) of the Company's Articles of Association. All shareholders appearing on the Company's Register of Members as at the close of business on Tuesday, 26 March 2019 will receive notice of and be entitled to attend and vote at the Company's Annual General Meeting scheduled for Friday 26 April 2019.

Pursuant to the Malta Stock Exchange Bye-Laws, all shareholders appearing on the Company's Register of Members as at close of business on Friday, 3 May 2018 will be paid, on the 22 May 2019, the final dividend as approved by the Annual General Meeting.

By Order of the Board

Basis of preparation

These figures have been extracted from MAPFRE Middlesea Group's audited financial statements for the year ended 31 December 2018, as approved by the Directors on 13 March 2019, and are published in terms of MFSA Listing Rule 5.54.

Statement of profit and loss

Non - technical accounts for the year ended 31 December

	Group			Company
	2018 CHOOD	2017 C'000	2018 00003	2017 C'000
Balance on the general business technical account Balance on the long term business technical account	4,988 14,748	5,787 12,829	4,988 1,355	5,187 1,004
Total income from insurance activities	19,736	18,616	6,343	6,791
Other investment income Investment expenses and charges Allocated investment retum transferred to	1,950 (307)	2,374 (42)	8,374 (303)	9,264 (256)
the general business technical account Other income	(1,228) 1,420	(1,925) 1,497	(1,228)	(1,925)
Administrative expenses	(3,015)	(2,811)	(1,767)	(1,705)
Profit for the financial year before tax	18,556	17,709	11.419	12,169
Tax expense	(4,521)	(4,188)	(1,991)	(1,830)
Profit for the financial year	14,035	13,521	9,428	10,339
Attributable to: - owners of the Company	8,594	8,510	9,428	10,3339
· non-controlling interests	5,441	5,011
	14,035	13 521	9,428	10,333
Earnings per share attributable to owners of the Company	9.3c	9 3c

Earnings per share attributable to owners of the Company

1

Statement of comprehensive income for the year ended 31 December

	Group		Company
	2018 C'000	2017 C'000	2018 C'000	2017 C'0000
Profit for the financial year	14,035	13,521	9.428	10 338
Other comprehensive income:
ltems that are or may be reclasssified subsequently to profitor loss
Change in fair value of available-for-sale investments	(180)	(37)	(215)	35
Available-for-sale investments reclassified to profit or loss	(42)	(145)	(42)	(148)
ltems that will not be reclasified to profit or loss
Re-measurement actuarial (loss)/gain on provision
for other liabilities and charges	(13)	27	(13)	27
ncrease in value of in-force business	2592	2,416
Total other comprehensive income, net of tax	17	2,261	(270)	(88)
Total comprehensive income for the year	14.052	15,782	9,158	10,253
Attributable to:
- owners of the Company	8,485	9,563
- non-controlling interests	5,567	6.219
Total comprehensive income for the year	14.052	15,782

Statement of financial position

	Group		Company
	At 31 December		At 31 December
	2018	2017	2018	2017
	C-000	00000	C 000	C'000
ASSETS
Intangible assets	72,320	72 352	6,170	5,871
Property, plant and equipment	15,841	13 301	1,972	1,933
Investment property	102,832	99 872	15,364	14 822
Investment in subsidiary undertakings			57,214	57 214
Investment in associated undertakings	27,799	30,876	330	366
Other investments	1,965,850	1,875,456	16,068	20,229
Deferred income tax	2,190	2,233	1,221	1,177
Reinsurers' share of technical provisions	23,464	18,216	22,994	17,607
Deferred acquisition costs	7,142	6,174	7,142	6,174
Insurance and other receivables	28,616	28,858	15,795	14,585
Income tax receivable	2,338	2,834
Cash and cash equivalents	70,387	64,580	18,438	15,064
Total assets	2,318,779	2,214,752	162,708	155,042
EQUITY
Capital and reserves attributable to owners of the Company	91,673	92 876	68,307	68.838
Non-controlling interests	80,021	80 604
Total equity	171,694	173,480	68,307	68 838
LIABILITIES
Defened income tax	30,968	28,444	2,016	1,680
Provision for other liabilities and charges	1,074	1,100	1,074	1,100
Technical provisions
- Insurance contracts and investment
contracts with DPF	2,049,991	1,943,310	80,658	73,010
- Investment contracts without OPF	45,032	49,067
Derivative financial instruments	54
Insurance and other payables	19,222	18,449	10,519	10,180
Income tax payable	734	902	134	234
Total llabilities	2,147,085	2,041,272	94,401	86,204
Total equity and liabilities	2,318,779	2,214,752	162,708	155,042

These condensed financial statements were approved by the Board on 13 March 2019 and were signed on its behalf by;

Martin Galea Chaiman

Alfred Attard

Director

Felipe Navarro Lopez de Chicheri President & Chief Executive Officer

MAPFRE Middlesea p.l.c. Preliminary Statement of Annual Results 31 December 2018

Statement of changes in equity for the year ended 31 December

GROUP	Attributable to owners of the Company
		Share				Non-
	Shara	premium	Other	Retained		controlling	I otal
	capital	account	reserves	a mings	l otal	interests	equity
	C'000	C'000	C'000	€ 000	C'000	C 000	C.000
Balance as at 1 January 2017	19,320	288	30,499	36 319	86,826	80.160	166,986
Comprehensive income
Profit for the financial year				8,510	8,510	5,011	13,521
Other comprehensive income.
Change in available for-sale
investments' fair values			(37)		(37)		(37)
Available-for-sale investments
reclassified to profit or loss			(145)		(145)		(145)
Re-measurement actuarial gain on provision
for other labilities and charges				27	27		27
Increase in value of in-force business			1,208		1,208	1,208	2,416
Total other comprehensive income, net of tax			1,026	27	1,053	1,208	2,261
Total comprehensive income			1,026	8,537	ਹੈ 283	6219	15,782
Transactions with owners
Dividends for 2016				(3,520)	(3,520)	(5,775)	(9,295)
Write-back of pnor year dividends				7	7		7
Total transactions with owners				(3,513)	(3,513)	(5,775)	(a,288)
Balance as at 31 December 2017	19,320	એ દીધ	31,525	41,343	92,876	80,604	173,480
Balance as at 1 January 2018	19,320	ਦਿੰਡ ਉ	31,525	41,343	92,876	80,604	173,480
Comprehensive Income
Profit for the financial year				8 294	8 594	5 441	14,035
Other comprehensive income;
Change in available for-sale
investments' fair values			(179)		(179)		(179)
Available-for-sale investments
reclassified to profit or loss			(42)		(42)		(42)
Re-measurement actuarial loss on provision
for other liabilities and charges				(13)	(13)		(13)
Increase in value of in-force business			126		126	126	252
Total other comprehensive income, net of tax			(az)	(13)	(108)	126	18
Total comprehensive income			(95)	8 581	8,486	5,567	14,053
Transactions with owners
Dividends for 2017				(9,700)	(9,700)	(6,150)	(15,850)
Write-back of pnor years dividends				11	11		11
Total transactions with owners				(a.eaa)	(9,689)	(6,150)	(15,839)
Balance as at 31 December 2018	19,320	688	31,430	40,265	91,673	80.021	171,694

Statements of changes in equity for the year ended 31 December

COMPANY

	Shara capital C'000	Share premium account C 000	Other reservas C'000	Retained earnings C'000	lotal C'000
Balance as at 1 January 2017	19,320	688	35.186	6,904	62,098
Comprehensive Income Profit for the financial year		4		10.339	10,339
Other comprehensive income: Change in available-for-sale investments' fair values			ਰੇਖ		34
Available-for-sale investments reclassified to profit or loss			(147)		(147)
Re-measurement actuarial gain on provision for other liabilities and charges				27	27
Total other comprehensive income, net of tax			(113)	27	(86)
Total comprehensive Income			(113)	10,366	10,253
Transactions with owners Dividend for 2016 Write-back of prior years dividends				(3,520) 7	(3,520) 7
Total transactions with owners of the company				(3,513)	(3,513)
Balance as at 31 December 2017	19,320	688	35,073	13,757	68,838
Balance as at 1 January 2018	19,320	Carlo	35 073	13,757	68,838
Comprehensive Income Profit for the financial year				9,428	9,428
Other comprehensive income: Change in available-for-sale investments' fair values			(215)		(215)
Available-for-sale Investments reclassified to profit or loss			(42)		(42)
Re-measurement actuarial loss on provision for other liabilities and charges				(13)	(13)
Total other comprehensive income, net of tax			(257)	(13)	(270)
Total comprehensive income			(257)	9,415	9,158
Transactions with owners Dividend for 2017				(9,700)	(9,700)
Write-back of prior years dividends				11	11
Total transactions with owners of the company				(9,689)	(9,689)
Balance as at 31 December 2018	19.320	6:13	34,816	13,483	68.307

Statement of cash flows for the year ended 31 December

	Group		Company
	2018 C.000	2017 00003	2018 C'000	2017 C'000
Cash flows from operating activities
Cash generated from operations	165,602	134,580	6.098	5,517
Dividends received	11,219	7,889	7,014	7,207
Interest received	25,363	25,643	459	606
Interest paid	(52)		(52)
Income tax paid	(1,659)	(132)	(1,776)	(24)
Net cash generated from operating activities	200,473	167,980	11,743	13,306
Cash flows from investing activities
Purchase of investment property	(898)	(826)	(91)	(232)
Disposal of investment property	607		5
Purchase of financial investments	(1,212,837)	(1,298,974)		(685)
Disposal of financial investments	1,037,916	1,139,768	3,450	2,082
Purchase of property, plant and equipment and intangible assets	(3,629)	(4,0995)	(2,058)	(3,084)
Disposal of property, plant and equipment and intangibles assets	14		14
Net cash (used in)/ generated from investing activities	(178,827)	(164,127)	1,320	(1,920)
Cash flows from financing activities
Dividends paid to owners of the Company	(9,689)	(3,513)	(9,689)	(3,513)
Dividends paid to non-controlling interests	(6,150)	(5,775)
Cash used in financing activities	(15,839)	(9,288)	(9,689)	(3,513)
Net movement in cash and cash equivalents	5,807	(5,435)	3,374	7,873
Cash and cash equivalents at beginning of year	64,580	70.015	15,064	7,191
Cash and cash equivalents at end of year	70,387	64,580	18,438	15,064