Home > Blog > Research > Research Report: MAPFRE Middlesea plc
We are initiating our coverage on MAPFRE Middlesea plc (“MMS” or “the Company”), with a Hold recommendation and a 1-year price target of €2.11. The Group’s gross premiums written from the general business has experienced a CAGR of 19% during the last four years and we expect this to continue, albeit at a slower rate, in line with a projected slow down growth of the local economy. Despite an increase in road accidents and extreme events experienced in Malta, MMS’s combined ratio stood at 93% in FY 2018. We expect the Group to maintain this profitability level (MMS’s long-term target is of 96%). In the last four years, MMS’s gross premiums written from the long term business increased by 20% CAGR. Despite a reported drop of 6.9% in the gross premium written as at the interim financials of June 2019, we expect the demand for the Group’s investment services to remain resilient, in lieu of Malta’s high savings ratio, according to management. MMS is currently

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