Middlesea Insurance held its 26th annual general meeting at the Hilton Conference Centre last month.
In line with Middlesea’s dividend policy of enhancing its balance sheet and ensuring future sustainability, the meeting approved a dividend distribution of a final dividend of 4.5 cents per 25c share amounting to Lm1,125,000, an increase of 29 per cent over last year. This amount will again be paid from the company’s untaxed account and will therefore be subject to a final withholding tax of 15 per cent on distribution. This was the 23rd consecutive year that a dividend was declared and distributed.
Middlesea’s executive chairman, Mario C. Grech said that in his address last year to shareholders, while reporting on the extraordinary results registered in 2005, he had also cautioned that future expectations needed to be based on a prudent analytical appreciation. The inherent uncertain nature of insurance risk business, which is also exposed to cyclical movements in capital markets, presented a continuous challenge in achieving well-defined objectives.
The overall group result for the year ended 31 December 2006 was a profit before tax of Lm3.6 million. When one considered that the group’s result in 2005 had been favourably impacted by an exceptional net fair value movement in investments of Lm2.2 million, mainly as a result of a sharp rise in the value of domestic equities and the favourable run-off in incurred claims of Lm1.1 million, it was reassuring to note the improvement coming through in the group companies’ underlying performance reflecting a strong and varied operational portfolio and the continued successful implementation of the group’s strategy.
During 2006, Middlesea remained faithful to the values that have defined the company since its inception. The board revisited both the mission statement and the business philosophy to focus on the group’s future direction. These contained the fundamental principles and rules of conduct that governed the group’s relations with the various parties with which it interacted in conducting its business. Such principles were aimed at protecting the interests of the individual parties and stakeholders, and thus constitute an integral part of the strategy of the group.
The following members were appointed by the various large shareholders on the Board of Directors until the 27th annual general meeting namely Mr R.E.D. Chalmers, Mr T. Depasquale, Dr J.C. Grech, Mr A. Jimenez Herradon, Dr M. Sparberg, Mr D. Sugranyes Bickel and Mr J.F.X. Zahra.
Pursuant to the Articles of Association, since the number of nominations did not exceed the vacancies, the following nominees were automatically appointed directors, namely Mr G. Bonnici, Dr E. Caruana Demajo, Mr A. Corsi, Mr G. Debono Grech, Mr V. Galea Salomone, and Mr L. Spiteri.
Mr Grech was re-elected director of the company until the conclusion of the 27th annual general meeting pursuant to the company’s Articles of Association.
The annual general meeting passed an Extraordinary Resolution authorising the company to buy back its own shares in certain specific circumstances in order to contribute to a stable market.
Immediately after the general meeting, the new Board of Directors appointed Mr Grech as executive chairman and Mr R.E.D. Chalmers as deputy chairman.