Mapfre MSV Life plc registered a profit before tax of €12.3 million for the year ended December 31, 2017, up 6.6 per cent on the previous year where an €11.6 million profit before tax was genera­ted. Profit after tax reached €10 million, up 16.7 per cent on the previous year.

Operating results were supported by strong inflows of premium revenue across the company’s range of insurance and investment products resulting from stronger customer demand.

Gross premiums written for financial year 2017 increased by 6.1 per cent from €272.6 million to €289.2 million. This was mainly due to an increased demand across all products, in particular single premium savings contracts and life protection business.

Claims decreased to €137.4 million during 2017 compared to the previous year’s €144.4 million. During the year the company had a lower mix of maturing medium-term single premium contracts, the large proportion of which was subsequently reinvested in new medium-term contracts.

In aggregate, the balance on the long-term business technical account increased to €11.8 million from the previous year’s €10.7 million as a result of a technical result improvement well supported by strong business growth and underwriting performance.

Mapfre MSV Group’s total assets increased by 9.7 per cent, from €1,930.4 million at the end of 2016 to €2,116.8 million at the end of 2017, while net technical provisions (including investment contracts without DPF) increased by 10.7 per cent from €1,733.4 million in 2016 to €1,918.8 million in 2017. The value of in-force business, which projects future transfers to shareholders arising from policies in force at the end of the year, increased by four per cent, from €60 million in 2016 to €62.4 million in 2017. This is partially attribu­table to the future value of business written during the year and the impact of the year’s up­dated mortality assumptions.

Total shareholders’ funds at the close of 2017 amounted to €161.2 million (2016: €160.3 million), an increase of 0.6 per cent over the previous year.

The net asset value per share has increased from €7.32 as at the end of 2016 to €7.36 per share driven by the underlying profitability of the business.

The directors recommend the payment of a final net dividend of €12.30 million (2016: €11.55 million). Mapfre MSV Life remains focused on the generation of capi­tal and its disciplined allocation and appropriation.

The Mapfre MSV With Profits Fund stood at €1.79 billion at December 31, 2017 (2016: €1.61 billion). The fund is invested in a very diverse portfolio of assets and underpinned by a rigorous and prudent investment management process and robust governance framework.

Good momentum in all our product groupings

2017 was another strong year for the equity markets and the satis­factory investment returns registered by the fund were driven mainly by the positive returns of the major equity markets.

The chairman of Mapfre MSV Life, John Cassar White, said: “In 2017, the life insurance market in Malta retained strong demand patterns. We continue to see good momentum in all our product groupings as customers continue to choose Mapfre MSV Life, reflecting trust in our brand and in the quality of our service proposition.”

Mr Cassar White added: “The shareholders of Mapfre MSV Life are wholly committed to ensuring that the company remains adequately capitalised at all times and well positioned for both business growth and the regulatory capital requirements of the Solvency II framework.

“The smooth and seamless transition into the Solvency II regime has allowed Mapfre MSV Life to recognise a higher element of excess regulatory capital. This has been taken into consideration by the directors when drawing up divi­dend and retention policies.”

Mapfre MSV Life CEO David G. Curmi said: “Going forward we will maintain strong focus on our customers by continuously assessing our business processes and operations in order to provide good value and excellent service. To this end we will continue to invest and innovate in information technology.

“During 2017 we progressed on our major IT programme and started on a series of product rollouts from old legacy systems to new technologies. This will enable us offer superior levels of service to our customer base.”

Mr Curmi added: “We have a number of initiatives lined up to strengthen further our digital platform and widen our digital marketing strategy. During 2017 we have substantially completed the development work in connection with SavviSave, an innovative simplified digital savings product that uses mobile technology and which we have developed jointly with Munich RE and Mapfre Group. We expect to launch Savvi­Save in the first half of 2018.”

Mr Curmi added: “We consider our distribution footprint in Malta to be one of our key strengths. While bancassurance remains our most important distribution channel, to ensure that we provide customers with greater accessibility and a better service, we are continuously seeking to strengthen all other distribution channels.

“Mapfre MSV Life continues to seek growth in its core business lines and believes that its increasing integration with Mapfre Group strategies will further strengthen and consolidate business prospects.”

Mapfre MSV Life plc is authorised by the Malta Financial Services Authority to carry on long-term business under the Insurance Business Act, 1998.