The board of directors of MSV Life plc has approved a resolution whereby differential rates of regular bonuses were declared in respect of with-profits plans held with MSV Life for the year ending December 31, 2011.
The most important factor that affects bonus rates is the underlying performance of the funds invested
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 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 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.
MSV Group chairman Roderick Chalmers, said: “During 2011, client demand for MSV Life with-profits products remained buoyant, reflecting the popularity of these products as savings instruments which offer potential for a tax efficient, stable, medium to long-term capital growth. The most important factor that affects bonus rates on with-profits investments is the underlying performance of the funds invested.”
MSV Life CEO David Curmi said: “In a year of continued market turmoil, MSV Life with-profits products delivered a modest after-tax return while protecting policyholders from the extremes of market volatility.
“With-profits investments provide investors with capital guarantees, which we are able to increase each year through the allocation of bonuses.”