MSV's pre-tax profit up 24 per cent

Middlesea Valletta Life Assurance Co. Ltd (MSV) has registered a pre-tax profit of Lm3.27 million for the year ended December 31. This represents an increase of 24 per cent over the previous year.

Business written increased by 28 per cent from Lm39.27 million in 2005 to Lm50.36 million in 2006, while the company's total assets increased by 23 per cent from Lm250.2 million in 2005 to Lm308 million at the end of 2006.

Chairman Roderick Chalmers said that despite operating in a competitive market, MSV succeeded in increasing its share of the individual life market, from 67 per cent in 2005 to over 70 per cent in 2006.

The bancassurance venture with Bank of Valletta remained the most important distribution channel for MSV and, during 2006, this continued to register further significant growth.

In 2006 the issued and fully-paid up capital of MSV was increased to Lm13 million through an injection of new capital amounting to Lm3 million.

MSV's annual general meeting approved the payment of a final dividend of Lm2 million, net of tax, by way of a bonus issue. This would be effected through the capitalisation of an equivalent amount from the revenue reserves, thereby further increasing the issued and fully paid up capital to Lm15 million.

Shareholders also approved the increase in the authorised share capital of the company from Lm15 million to Lm20 million.

The MSV board of directors approved a resolution whereby differential rates of reversionary bonuses were declared in respect of with-profits plans held with MSV for the year ending December 31.

These amounted to 4.05 per cent for the Comprehensive Life Plan, 4.35 per cent in respect of the Comprehensive Flexi Plan, 4.5 per cent under the Single Premium Plan and 4.5 per cent under the with-profits option of the MSV Investment Bond.

The board also approved the declaration of a terminal bonus in respect of Comprehensive Life Plan policies that have been in force for more than 10 years.

This would be paid on claims payable as a result of death or maturity between January 1 and the next bonus declaration, at a rate of 1.5 per cent for every year after the tenth year of the policy, subject to a maximum of five per cent.

It would be paid on the value of the policy account as at the date of death or maturity.

On the Old Series Endowment and Whole Life policies, a reversionary bonus of 2.2 per cent of the basic sum assured plus bonuses was declared.

The board also approved a reversionary bonus of 3.45 per cent on those Secure Growth policies which formed part of the portfolio of business transferred to MSV from Assicurazioni Generali SpA in 2000.