Middlesea Valletta Life sees 24% rise in pre-tax profits
Targets Italian life assurance market
Middlesea Valetta Life Assurance (MSV) registered a profit before tax of Lm3.27 milllion (€7.62m) for the year ended December 31, 2006, an increase of 24 per cent over the previous year. Business Written increased by 28 per cent from Lm39.27 million (€91.5m) in 2005 to Lm50.36 million (€117.3m) in 2006, while the company's total assets increased by 23 per cent from Lm250.2 million (€582.8m) in 2005 to Lm308 million (€717.4m) at the end of 2006.
MSV chairman Roderick Chalmers said MSV had continued to demonstrate its strength in the individual protection and long-term savings market in Malta.
"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. MSV is clearly reaping the benefits of its strategy to promote and provide a broad range of value for money savings, investment and protection products and services through a multi-channel distribution platform. The bancassurance venture with Bank of Valletta remains the most important distribution channel for MSV and, during 2006, this continued to register further significant growth."
He added that the shareholders of MSV understand that the consistent growth of MSV means that the company must have a strong capital base and its shareholders are committed to continue to further strengthen the financial position of the company.
In 2006 the issued and fully-paid up capital was increased to Lm13,000,000 (€30.3m) through an injection of new capital of Lm3,000,000 (€7m). Furthermore, the annual general meeting of MSV approved the payment of a final dividend of Lm2,000,000 (€4.7m), net of tax, by way of a bonus issue. This will 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 (€34.9m).
Shareholders also approved an increase in the authorised share capital of the company from Lm15 million (€35m) to Lm20 million (€46.6m)."
The directors of MSV 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, 2006. These amounted to 4.05 per cent for the Comprehensive Life Plan (regular and single premium policies), 4.35 per cent in respect of the Comprehensive Flexi Plan (regular and single premium policies), 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 (single and regular premium) policies that have been in force for more than 10 years. The terminal bonus will be paid on claims payable as a result of death or maturity between January 1, 2007 and the next bonus declaration, at a rate of 1.5 per cent for every year after the 10th year of the policy, subject to a maximum of five per cent. This terminal bonus will 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. Although no terminal bonus has been declared for such policies on claims arising out of death or maturity during 2007, any terminal bonus declared on the "Old Series" policies accumulated over previous years to date, shall remain payable on such claims occurring in 2007.
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 during 2000.
David G. Curmi, CEO, said that having attained a local market share of over 70 per cent, MSV will continue to focus on its overseas development strategy, particularly in the Euro-Med Region. MSV is already authorised to carry on business under the freedom of services regime in Italy, and is currently developing a suite of products that will enable it to enter the Italian life assurance market .
MSV chairman Roderick Chalmers said MSV had continued to demonstrate its strength in the individual protection and long-term savings market in Malta.
"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. MSV is clearly reaping the benefits of its strategy to promote and provide a broad range of value for money savings, investment and protection products and services through a multi-channel distribution platform. The bancassurance venture with Bank of Valletta remains the most important distribution channel for MSV and, during 2006, this continued to register further significant growth."
He added that the shareholders of MSV understand that the consistent growth of MSV means that the company must have a strong capital base and its shareholders are committed to continue to further strengthen the financial position of the company.
In 2006 the issued and fully-paid up capital was increased to Lm13,000,000 (€30.3m) through an injection of new capital of Lm3,000,000 (€7m). Furthermore, the annual general meeting of MSV approved the payment of a final dividend of Lm2,000,000 (€4.7m), net of tax, by way of a bonus issue. This will 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 (€34.9m).
Shareholders also approved an increase in the authorised share capital of the company from Lm15 million (€35m) to Lm20 million (€46.6m)."
The directors of MSV 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, 2006. These amounted to 4.05 per cent for the Comprehensive Life Plan (regular and single premium policies), 4.35 per cent in respect of the Comprehensive Flexi Plan (regular and single premium policies), 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 (single and regular premium) policies that have been in force for more than 10 years. The terminal bonus will be paid on claims payable as a result of death or maturity between January 1, 2007 and the next bonus declaration, at a rate of 1.5 per cent for every year after the 10th year of the policy, subject to a maximum of five per cent. This terminal bonus will 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. Although no terminal bonus has been declared for such policies on claims arising out of death or maturity during 2007, any terminal bonus declared on the "Old Series" policies accumulated over previous years to date, shall remain payable on such claims occurring in 2007.
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 during 2000.
David G. Curmi, CEO, said that having attained a local market share of over 70 per cent, MSV will continue to focus on its overseas development strategy, particularly in the Euro-Med Region. MSV is already authorised to carry on business under the freedom of services regime in Italy, and is currently developing a suite of products that will enable it to enter the Italian life assurance market .