Mapfre-Middlesea this morning confirmed that it has reached an agreement to take over Allcare Insurance Ltd's insurance portfolio.
In a company announcement on the Malta Stock Exchange, Mapfre-Middlesea said "it has reached a preliminary agreement" with Allcare Insurance Ltd for the transfer of the insurance portfolio of Allcare Insurance Ltd to Mapfre-Middlesea. The preliminary agreement is subject to all regulatory approvals from the relevant authorities.
“Once implemented, the portfolio transfer shall not alter the rights of the unsured persons under the policies issued by Allcare Insurance Ltd, which policies will continue to be serviced by Mapfre-Middlesea plc until expiry, and existing claims will be handled and settled by Mapfre-Middlesea. Further details will be announced in line with Listing Rules when the final agreement is entered into.
Allcare Insurance Ltd’s business operations are set to be acquired by Mapfre-Middlesea
The Malta Malta Independent broke the story today after speaking to Allcare Insurance Ltd Chairman Eric Schembri yesterday. Mr Schembri said the company was doing all it could to ensure that none of its employees become redundant.
This paper contacted Mr Schembri after sources claimed that the company was being “bought out by Mapfre for around €1 million and that some 45 employees would be made redundant.” Mr Schembri denied this was a take-over, insisting that Mapfre-Middlesea was only buying Allcare Insurance Ltd’s business. He claimed that negotiations were ongoing.
Mr Schembri also insisted that he was working to avoid redundancies, and this could be achieved by absorbing the affected employees into the group’s other companies, which include AIB Ltd and Crystal Finance. He could not say, since negotiations had not been concluded, how many employees would be transferred to Mapfre-Middlesea but said the aim was for all current employees to either retain their job or move on to the new company.
Asked to comment about the €1 million figure, Mr Schembri said the sum was still being negotiated, but insisted that €1 million was “too low.”
He also denied rumours that the development came about as a result of the Tumas Group withdrawing its shareholding. Tumas owns 25% of Allcare Insurance Ltd. The decision to sell the company’s business was related to personal health reasons, Mr Schembri said.
Mr Schembri said clients will not be affected as Allcare Insurance Ltd’s business operations will be smoothly transferred to Mapfre-Middlesea, once the negotiations are concluded.
Noting that everything is being done “under the auspices of the regulator,” the company chairman said those who are insured with the company or have pending claims will not be affected. “The usual service will still be offered as before, from the same places.” Mapfre-Middlesea will be running Allcare Insurance Ltd’s head office.
When contacted by this paper, former director Alfred Mifsud said he no longer had anything to do with the company. “I resigned from Allcare Insurance Ltd even before my appointment as Deputy Governor of the Central Bank,” he said. Mr Mifsud started in his new role at the CMB earlier this month.