Mapfre MSV Life registered a profit before tax of €11.6 million for the year ended 31 December 2016, down 25.6% on the previous year, when a €15.6 million profit before tax was influenced by a one-off pre-tax gain of €5.05m arising as a result of a major restructuring of the company’s reinsurance programme.
Profit after tax stood at €8.6 million, down 14.9% on the previous year.
The company said operating results were supported by strong inflows of premium revenue across its range of life insurance, savings and investment products resulting from stronger customer demand.
Gross premiums written for financial year 2016 increased by 23.5% from €220.8 million to €272.6 million. This was mainly due to an increased demand across all products in particular single premium savings contracts and life protection business.
Claims increased to €144.4 million through the year compared to a prior year €109.2 million due to a higher amount of maturing medium-term single premium contracts, the large proportion of which has subsequently been re-invested in new medium-term contracts.
In aggregate the balance on the long term business technical account decreased to €10.7 million from a prior year €14.1 million as a result of the non-recurring gain from the restructuring of the reinsurance programme in 2015 but the technical result was still supported by strong business growth and technical performance.
The Mapfre MSV Group’s total assets increased by 10.7% from €1,743.9 million at the end of 2015 to €1,930.4 million at the end of 2016, whilst net technical provisions (including investment contracts without DPF) increased by 11.0% from €1,561.1 million in 2015 to €1,733.4 million in 2016.
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 12.4% from €53.4 million in 2015 to
€60.0 million in 2016. This is partially attributable to the future value of business written during the year and the impact of the year’s updated mortality assumptions.
Equity and bond markets produced robust yet somewhat weaker returns than those generated in prior year with net investment income decreasing from €91.2 million in 2015 to €78.1 million in 2016. Investment performance was underpinned by the Company’s conservative and diversified portfolio of assets, as well as by the rigorous and prudent investment management process that is so important in the management of life insurance companies.
Total shareholders’ funds at the close of 2016 amounted to €160.3 million (2015: €150.2 million), an increase of 6.7% over the previous year.
The net asset value per share has increased from €6.86 as at the end of 2015 to €7.32 per share driven by the underlying profitability of the business.
The directors recommended the payment of a final net dividend of €11.55 million (2015: €5.00 million).