Bank of Valletta yesterday announced that it has purchased from Münchener Rückversicherungs-Gesellschaft (Munich Re), its 10 per cent shareholding in Middlesea Valletta Life Assurance Company Limited (MSV) consisting of 860,000 ordinary shares.

Munich Re has elected to concentrate its investment in Malta through the Middlesea Group holding company, Middlesea Insurance plc.

Concurrently with the above transaction, BOV has purchased from Middlesea Insurance plc a one per cent shareholding in MSV, consisting of 86,000 ordinary shares.

Following these purchases, Bank of Valletta now holds 50 per cent of MSV's total equity, represented by 4,300,000 ordinary shares of one Maltese lira each fully paid up. The bank will, together with Middlesea Insurance plc, have joint control of MSV in what is now effectively a joint venture between the bank and Malta's largest indigenous insurance company.

BOV chairman Roderick Chalmers said: "On the formation of Middlesea Valletta in 1994, BOV was the first bank in Malta to start offering life assurance products through its branch retail network - a milestone in transforming BOV's operations from traditional retail banking towards the provision of financial services and products. Bank of Valletta and Middlesea had effectively introduced the bancassurance concept to Malta."

The chairman said that with policyholders' account provisions of over Lm180 million, MSV was today considered to be the leading Maltese provider of life assurance products.

"The bank's investment in this company has reaped the desired benefits, and today Bank of Valletta is publicly giving a vote of confidence in the future prospects of Middlesea Valletta by increasing our level of investment in this company to 50 per cent."