Globalcapital has registered €5.6m (€5,606,505) in pre-tax earnings for the financial year ending on 31st December 2015 compared to €0.8 million in 2014. This is the second consecutive year that the Group registered a full year profit before tax after implementing an aggressive transformation strategy, from the second half of 2014 onwards, to achieve long-term financial stability and profitability.
Upon taking office in September 2015, the newly constituted Board of Directors immediately focused its efforts on various urgent initiatives with particular emphasis on putting in place a strategy and implementation plan for raising the necessary funding for the repayment of the Company's bond.
The turnaround in the Group's operational performance was the result of the execution of the aggressive transformation strategy that started to take material effect in early June 2014 and which yielded the full results in the financial year ended 31 December 2015. This included the generation of a sustainable level of revenue growth together with a reduction in overall operational costs. This transformation resulted in a better performance of all the regulated businesses forming part of the Group.
Life insurance
The life insurance business registered significant growth in both the conventional and unit linked business, while retaining the prior year's levels of interest sensitive business. The continued efforts to enhance the product suite as well as the re-pricing of existing products facilitated improved competitiveness and marketability, thus generating positive results.
These efforts were complemented by a positive performance of the company's investment and property portfolio totaling €7,368,021 which was partially compensated by an increase in technical reserves. The life company reported profits after tax of €4,417,615 compared to a prior year profit of €3,146,443. The increment in the value of in-force business for the year under review amounted to €1,355,385 (2014 - €610,968) which mainly reflects the higher volumes on profitable terms.
GlobalCapital Health Insurance Agency Ltd
The health insurance agency, representing Bupa in Malta, once again registered a steady performance and healthy profitability. Revenues were maintained at similar levels of those generated in 2014 despite the competitive environment within which the health business is operating. Coupled with a reduction in operative costs, a marginal improvement in the health insurance agency's overall performance was registered with a profit after taxation amounting to €740,194 compared to €574,328 in 2014.
Investments
The investment company reported a profit for the year of €95,197 compared to the 2014 loss of €464,224 - a turnaround of €559,421. The company's revenue year-on-year decreased by 10% which was more than offset by the significant decrease in operative costs. The company's provisions for the year increased which adversely impacted the overall performance of the investment company.