The Board of Directors of the GlobalCapital Group has announced improved operating results in all business segments, especially insurance business, for the year ended 31 December 2012.

The highlights of GlobalCapital’s performance in 2012 include:

GlobalCapital Life Insurance’s key performance measures:

Value of in-force business (VIF) up by 15% since 2010 to €3.3m  

Embedded Value of life business accelerates to €12.6 million

7 per cent market share in regular premium business

GlobalCapital Health Insurance Agency increases profit after tax to €859,798

GlobalCapital Financial Management reported an inflow increase of 7% over 2011

Segment profit of €90,596 compared to a prior year segment loss of €449,981   

GlobalCapital plc is pursuing established long-term strategies to meet its value propositions to customers, distribution partners and shareholders. From the improved 2012 operational business performance and robust well-established business lines, GlobalCapital plc is a company returning to operational strength and committed to meeting the financial needs of the Maltese community today. Based on the 2012 results the company is showing positive signs about the prospects for its key life insurance and health insurance businesses. We have in place the people, products, distribution platforms and improved operational efficiency to take the business forward and create value. Our focus now is on execution to overcome legacy issues.

The Group registered a loss after tax for the year ended 31 December 2012 of €2,406,685 compared to a loss of €4,193,670 as at end of December 31, 2011. The results were impacted by a negative shift of 31% in local equity shareholdings which resulted in losses of €2 million offsetting the positive operating performance. Those unrealised losses reflect the overall continued under-performance of some of the local equities in the market which it is hoped will be reversed in the future. In addition, certain legacy issues, particularly other provisions of €446,000 and property impairment at €352,680 further reversed a positive operational performance. The prevailing uncertainty within the Eurozone has increased volatility in the financial markets hampering the turnaround of the Group results.

The Board of Directors continues to pursue a vigorous revitalisation policy to generate sustainable business and recreate value for shareholders.