MAPFRE MSV Life p.l.c. registered a profit before tax of €17.0 million for the year ended 31 December 2022, up 2.3% on the previous year. Total shareholders’ funds amounted to €223.9 million at the close of 2022, reflecting an increase of 1% over the previous year.
Gross premiums written for financial year 2022 totalled €248.8 million, a decrease of 23.5% over the prior year €325.1 million, which represented a record year in terms of gross premium written. The prevailing markets conditions over the year contributed to a drop in demand for single premium business. On the other hand, strong demand continued to be registered for regular premium business. Net claims incurred decreased by 3.3% to €295.0 million through the year. The majority of these claims are maturing medium-term single premium contracts. A good proportion of maturing contracts were subsequently re-invested into new medium-to long- term contracts.
Commenting on these results, the Chief Executive Officer of MAPFRE MSV Life p.l.c., Etienne Sciberras, stated that “these positive results, achieved in a challenging macro environment, reflect the resiliency of our business model, which is underpinned by customer centricity, diversified revenue drivers, multi-channel distribution network and strong financial credentials. Mr Sciberras added that “the exceptional interest rate increase during 2022 provided an uplift to profitability as a result of the favorable movement in reserves.”
After a number of years of consistent growth, MAPFRE MSV Life p.l.c.’s total assets saw a decrease of 13.4% to €2,356.7 million at the end of 2022, whilst net technical provisions (including investment contracts without DPF) decreased by 15.3% to €2,063.8 million. The value of in-force business, which projects future transfers to shareholders arising from policies in force at the end of the year, decreased by 8.3% to €79.8 million in 2022. This is attributable to the impact of policy maturities and negative fair value movements.
At the end of 2022, the solvency ratio stood at 161.6%. This ratio remains above the regulatory solvency capital requirement. However, given the current geopolitical situation, elevated inflation and the unclear interest rates path, the Board of Directors have reviewed the Company’s capital needs over the forthcoming medium term within the framework of Solvency II and recommended that no dividend be paid for financial year 2022.
Dr Gordon Cordina, Chairman of MAPFRE MSV Life p.l.c., concluded that, “Undoubtedly, 2022 has been a successful but nonetheless a challenging and complex year. It is during testing times like these, that the value of a company like MAPFRE MSV Life can be better appreciated, where its shareholders are wholly committed to ensuring that the Company remains adequately capitalised at all times and well positioned for business growth. This enabled the company to remain focused on the execution of its 2022-2024 strategic plan. The digital and organizational transformation remains on track while growth in regular business, particularly in the pension segment remains in line with our expectations. ”
MAPFRE MSV Life p.l.c. (C-15722) is authorised by the Malta Financial Services Authority (MFSA) to carry on long term business under the Insurance Business Act. MAPFRE MSV Life p.l.c. is regulated by the MFSA.