Middlesea Insurance plc and Corporación Mapfre have announced further strengthening of the partnership that has been created between the two organisations.

This was in line with the strategy of Middlesea in the restructuring of its shareholding in preparation for its further expansion overseas with emphasis on the Euro-Mediterranean region.

Following the requisite approval by the MFSA, permission was granted to allow Corporación Mapfre to acquire Air Malta plc’s 7.33 per cent shareholding and 7.85 per cent shareholding from the Malta Government. Mapfre’s holding increased from 5.49 per cent to 20.66 per cent and the Government of Malta now holds 7.93 per cent shareholding.

Mr M.C. Grech, chairman and CEO of Middlesea Insurance plc said that the relationship between Middlesea and Mapfre started when Corporación Mapfre S.A. formed part of the panel of reinsurers used by Middlesea.

The importance of evolving this relationship into a partnership took fruition on 28 September 2000, when the purchase of 51 per cent of the share capital of Progress Assicurazioni SpA was completed by Middlesea through the purchase of shares from Mapfre. Moreover, agreement was reached between Middlesea Insurance plc and Corporación Mapfre that Middlesea will acquire the remaining 39 per cent shareholding in Progress Assicurazioni SpA from Corporación Mapfre. This will bring the shareholding in Progress of Middlesea Insurance plc to 90 per cent and that of Middlesea Valletta Life to10 per cent.

Mr D. Sugranyes Bickel, vice chairman and CEO of Corporación Mapfre, said that as a policy, Mapfre sought to have equity in the holding company rather than in subsidiary group companies. Thus, they were never averse to having a higher involvement in Middlesea Insurance plc. This step dovetailed with the shareholding of the company and the emphasis that growth could only come from outside of Malta, especially having strategic partners like Corporación Mapfre, Munich Re and Assicurazioni Generali.

This development has facilitated Middlesea Insurance plc into becoming a fully fledged financial organisation with its shareholding structure as follows: Bank of Valletta plc 21.65 per cent, Corporación Mapfre S.A. 20.66 per cent, Munich Reinsurance Co. 12.73 per cent, Government of Malta 7.93 per cent, HSBC Bank Malta plc as custodian/subcustodian 5.64 per cent, Assicurazioni Generali SpA 4.67 per cent, Swiss Re Italia SpA 1 per cent and the general public 33.65 per cent.

Corporación Mapfre S.A. is the holding company of a group of insurance, reinsurance, fund management and service companies, ranking as the largest insurance group in Spain and one of the largest insurance groups in Latin America. As of the close of September 2004, it recorded a premium income of e5 billion and a net profit of e135.1 million, increasing 27 per cent and 21 per cent, respectively, over the same period of 2003.