MSV Life pre-tax profit down to €5.43 million

MSV Life plc registered a pre-tax profit of €5.43 million for 2011, down from a pre-tax profit of €11.63 million the previous year.

2011 was marked by historically low yields and exceptionally volatile equity markets

Profit after tax last year fell to €3.53 million from €7.84 million in 2010.

Business written contracted, closing off 2011 at €128.02 million compared to €147.49 million in 2010, following a company strategy to write more regular premium and protection business, and to the prevailing market conditions.

The MSV Group’s total assets increased from €1,130.71 million at the end of 2010 to €1,165.11 million at the end of 2011. The life fund increased by 3.41 per cent from €1,000.44 million in 2010 to €1,034.55 million in 2011.

The value of ‘in-force business’ decreased by 1.79 per cent from €42.53 million in 2010 to €41.77 million in 2011. The value of in-force business reflects the after tax value of the projected future transfers to shareholders arising from policies in force at the end of the year.

Total shareholders’ funds at the close of 2011 amounted to €111.65 million (2010: €108.89 million), an increase of 2.53 per cent over the previous year.

MSV Group chairman Roderick Chalmers explained that 2011 was marked by historically low yields, exceptionally volatile equity markets and a dampened retail demand.

“This investment environment is not ideal for a long-term, long-only investor like MSV Life. The equity exposure in our diversified portfolio was a negative drag on the overall performance of the portfolio during 2011. Notwithstanding the unfavourable investment conditions during 2011, the MSV Life investment portfolio managed a marginal positive total return.”

MSV Life has total assets of over €1,165 million, a customer base of over 80,000 policyholders, and shareholders’ equity of €112 million.

The group board approved a resolution on differential rates of regular bonuses in respect of with-profits plans held with MSV Life for 2011. These amounted to 2.25 per cent for the MSV Comprehensive Life Plan (regular and single premium policies), 2.45 per cent in respect of the MSV Comprehensive Flexi Plan (regular and single premium policies), 2.45 per cent under the MSV Single Premium Plan, and 2.45 per cent under the with-profits options of the MSV Investment Bond and of the MSV Retirement Plan. On the ‘Old Series’ Endowment and Whole Life policies, a regular bonus of 2.2 per cent of the basic sum assured plus bonuses was declared.

The board also approved a regular bonus of 2.45 per cent on those secure growth policies which formed part of the portfolio of business transferred to MSV Life from Assicurazioni Generali SpA during 2000.

The board also approved a regular bonus of 1.75 per cent on the Alico 78 policies and a regular bonus of two per cent on the Alico 66 polices which formed part of the portfolio of business transferred to MSV Life in 2011 from American Life Insurance Company.