Middlesea Insurance plc – Financial Statements for the year ended 31 December 2009

April 29, 2010

Middlesea Insurance plc announced that the Board of Directors approved the audited financial statements of the Company and of the Group for the financial year ended 31 December 2009. The Board resolved that these audited financial statements be submitted for the approval of the shareholders at the forthcoming Annual General Meeting which is scheduled ofr Wednesday, June 9, 2010.

Loss before tax for the Group increased from EUR 29.79 million to EUR 54.44 million. These losses are mainly contributed to the negative results registered by the Italian company Progress Assicurazioni SpA. In light of these serious negative results, the group stated that “the Progress and Middlesea Insurance plc Board of Directors moved to take various corrective actions during 2008 and 2009, with a series of radical measures. Remedial actions included steps to radically downsize the portfolio through the termination of non-performing agencies (which were reduced from 164 to 39 at substantial cost), premium rate increases, claims management restructuring measures and the engagement of various specialist consultants, including anti-fraud investigators to review the legitimacy of the high level of claims being experienced. In addition, further specialised re-insurance cover was acquired to protect against any further deterioration in claims experience. In an effort to ensure that Progress was able to withstand the substantial losses that were being incurred, the Board of Directors also sought financial support from the Parent Company.” Earnings per share moved from a negative EUR 0.75 to a negative EUR 1.99.

The Board of Directors did not recommend the payment of a dividend.

To view the official announcement and the Financial Statements, Click Here.