MSV Life plc has registered a profit before tax of €11.63 million for the year ended December 31, 2010, an increase of 52.2 per cent over 2009. Profit after tax in 2010 amounted to €7.84 million compared to €6.20 million recorded in 2009.
Business written increased strongly by 18.3 per cent from €124.65 million in 2009 to €147.49 million in 2010 supported by business growth across all major classes of business particularly single premium participating contracts.
The MSV Group’s total assets, supported by strong premium growth and investment performance, increased from €999.24 million at the end of 2009 to €1,130.71 million at the end of 2010, while the Life Fund increased by 13.7 per cent from €879.20 million in 2009 to €1,000.44 million in 2010.
The value of in-force business increased by 4.4 per cent from €40.73 million in 2009 to €42.53 million in 2010. 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.
The net investment income decreased from a gain of €61.02 million in 2009 to a gain of €56.80 million in 2010. At the end of 2010 the level of excess assets stood at €68.79 million showing an excess of €28.45 million over the statutory solvency margin of €40.35 million.
Total shareholders’ funds at the close of 2010 amounted to €108.89 million, an increase of 1.6 per cent over the previous year.
The chairman of MSV Group, Roderick Chalmers, said: “I am pleased to be able to announce the best set of results registered by MSV Group to date. During 2010, investment conditions in both local and international markets were once again, very challenging and were characterised by continuing low interest rates, tightened fiscal conditions and widening credit spreads across the eurozone member states.”
Mr Chalmers added: “Against this background of uncertainty and a weakened euro our investment performance was satisfactory and well underpinned both by the company’s conservative and diversified portfolio of assets as well as by the rigorous and prudent investment management process which is so important in the management of life insurance companies.”
The board of directors of MSV Life 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, 2010. These amounted to 3.25 per cent for the Comprehensive Life Plan (regular and single premium policies), 3.45 per cent in respect of the Comprehensive Flexi Plan (regular and single premium policies) and 3.45 per cent under the Single Premium 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.
Finally, the board also approved a regular bonus of 3.45 per cent on those Secure Growth policies which formed part of the portfolio of business transferred to MSV Life from Assicurazioni Generali S.p.A. during 2000.
The chief executive of MSV, David Curmi, said: “The thorough corporate restructuring that we have undertaken during 2010 puts us on very firm ground to continue to strengthen our position as the leader in the life insurance market in Malta and to look forward to the future with confidence. During 2011 we will focus on the development of a series of innovative products and new marketing initiatives in response to the evolving customer needs for life insurance and investment type products.”