MSV Life plc (“MSV Life” and “MSV Group”) – (formerly Middlesea Valletta Life Assurance Co. Ltd) registered a profit before tax of €11.63 million for the year ended 31 December 2010, an increase of 52.2% over 2009. Profit after tax in 2010 of €7.84 million compared to the profit after tax of €6.20 million recorded in 2009.
Business Written increased strongly by 18.3% 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, whilst the Life Fund increased by 13.7% from €879.20 million in 2009 to €1,000.44 million in 2010.
The value-of-in-force business increased by 4.4% 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% over the previous year.
The Chairman of MSV Group, Roderick Chalmers, stated “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 Euro zone 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.”
Mr. Chalmers stated, “2010 was a very important year for MSV Life as the company moved rapidly to implement a Board mandated initiative to transform itself into a wholly self-sufficient, standalone company, ably led by its Chief Executive Officer, David Curmi. A new senior management team has been put in place, with a number of important senior executives having been recruited during the year. The change of name and re-branding of the company was also successfully completed during the last quarter of 2010.”
Mr. Chalmers added, “with total business written during the year of over €147 million, total assets of over €1.1 billion, more than 94,000 policies in force and total sums assured of more than €3.3 billion, MSV Life is Malta’s leading life insurance company and prospects for continuing growth and development are encouraging, both in the life assurance and in the long term savings and retirement areas. At its core, the thorough restructuring that took place in 2010 ensures a strong and independent future for the company.”
The shareholders of MSV Life, namely Bank of Valletta p.l.c. and Middlesea Insurance p.l.c., are wholly committed to ensuring that MSV Life remains strongly capitalised at all times and well positioned for business growth. On 14 April 2010 an increase in the issued share capital of the company was effected through a capitalization of a dividend of €3.00 million. As a result, the issued share capital of MSV Group increased