Notices to With Profits Policyholders

1st August 2022

Market Value Reduction

With effect from 1st August 2022, a Market Value Reduction (MVR) on With Profits surrender transactions is applicable. The MVR has the effect of increasing the surrender charge when a surrender transaction takes place before the maturity of the policy. A MVR is not applicable in case of policy maturity and death claim transactions.

The increase in the surrender charge because of the application of a MVR may vary from one policy to another but is largely dependent on the type of the policy, its term and the proximity of the surrender transaction to the maturity date.

This adjustment is designed to ensure fairness between the policyholders who leave their policy in force till maturity and those who choose to surrender their policy prior to the policy maturity date.

The application of a MVR has become necessary due to the significant fall in the values across the mainstream asset classes during the first half of 2022 and the prevailing market uncertainty.

We will be reviewing our Market Value Reductions regularly in line with market movements.

A Market Value Reduction is considered a temporary measure until financial market conditions improve.

Etienne Sciberras
Chief Executive Officer