Industry ‘needs time to settle down’ from slew of new regulations, pleads MAPFRE Middlesea Chair

As a ‘welter’ of legislation and regulation ‘continues to bear down’ on the insurance industry, the Chair of Malta’s largest insurer is insisting that the sector needs “time to settle down” after “having come through an unprecedented period of new laws” that needed to be implemented.

While saying that he “can understand the need for these regulations and new reporting requirements,” MAPFRE Middlesea Chairperson Martin Galea expressed his frustration that “there does not seem to be any let up in new regulations set to come in over the next few years.”

Mr Galea made the comments in his opening statement to the company’s annual report, where he oversaw “excellent” results as profit before tax jumped to €24 million from €8.3 million the previous year.

He attributed the results “chiefly to a more scientific approach in assessing our risks, and pricing accordingly, as well as a better than expected claims performance.”

MAPFRE Middlesea continues to have a balanced portfolio, with motor taking up 46 per cent of the business, health 17 per cent and the remainder 37 per cent.

The company’s life insurance subsidiary MAPFRE MSV Life continued to make headway in pensions and unit-linked products throughout the year, elements Mr Galea described as “key components” in its strategic plan.

“Over time, these lines of business are expected to become more material. I am pleased to say that we have a leadership position in the pensions market. This market is still in its infancy but expected to continue growing over the next years.”

The results led MAPFRE Middlesea to announce an increase in its dividend, amount to a net €4.5 million, or €0.048913 per share.