Allcare Insurance acquired by Middlesea for €1.6 million

Allcare Insurance is set to be acquired by Mafpre Middlesea, the insurance giant said in a company announcement.

Mapre Middlesea will pay €1.1 million, payable within seven days of the completion date, and a deferred payment of €500,000 over a three-year transitory period.

The transfer of business will  see all general insurance conducted by Allcare, employees and intellectual property rights acquired by Mapfre Middlesea.

The company will also assume all of Allcare’s rights and obligations with third party suppliers and reinsurers.

The application to the financial regulator requested approval of the portfolio transfer is expected to be approved by the Malta Financial Services Authority. Upon completion date, Allcare will cease its insurance business.

Its former shareholder, former Mid-Med Bank chairman Alfred Mifsud, was made deputy governor of the Central Bank in April 2014. Allcare's other shareholder is Eric Schembri.

Mapfre Middlesea Group made a pre-tax profit before tax of €15.18 million in the first six months of 2015, compared to €8.21 million in the same period last year.

All group companies registered improved results with the main driver being the group’s life operations with MSV Life plc registering higher profits than the comparative period last year, mainly resulting from a one-off saving from renegotiation of the reinsurance treaty.

The group’s gross premiums written increased by 49.4 per cent during the first six month of 2015 while the general business turnover continued to register important growth in excess of market performance with an increase of 15.1 per cent.