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 31 December 2015. These amounted to 3.15% for the MSV Comprehensive Life Plan (regular and single premium policies), 3.25% in respect of the MSV Comprehensive Flexi Plan (regular and single premium policies), 3.25% under the MSV Single Premium Plan and 3.25% under the With Profits options of the MSV Investment Bond and of the MSV Retirement Plan. On the 'Old Series' Endowment and Whole Life policies, a Regular Bonus of 2.4% of the basic sum assured plus bonuses was declared.
In addition, the Board also approved the declaration of a Final Bonus in respect of the Comprehensive Life Plan (single and regular premium) and the Comprehensive Flexi Plan (single and regular premium), for policies that have been in force for more than 10 years. The Final Bonus will be paid on claims payable as a result of death or maturity between 1 March 2016 and the next bonus declaration, at a rate of 2.0% for every year after the 10th year of the policy, capped at the rate of 7.5%. This final bonus will be paid on the value of the Policy Account as at the date of death or maturity.
The Board also approved a Regular Bonus of 3.15% 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. Finally the Board also approved a Regular Bonus of 1.75% on the Alico 78 policies and a Regular Bonus of 2.00% on the Alico 66 polices which formed part of the portfolio of business transferred to MSV Life in 2011 from American Life Insurance Company ("ALICO").
The Chairman of MSV Life, John Cassar White stated, "despite the difficult investment conditions that prevailed in 2015 the MSV With Profits Fund performed well in 2015 delivering a net investment return of 6.87% compared to 9.50% in the previous year. By the end of the year the fund size stood at over €1.4 billion, increasing 14% over 2014 mainly due to the stronger inflows of single premium savings."
Mr. Cassar White added, "during 2015, MSV With Profits policyholders have benefitted from the active but prudent management of the Fund, the asset diversification and geographical spread."
The Chief Executive Officer of MSV Life, David G. Curmi, stated, "the objective of the MSV With Profits Fund is to offer competitive medium to long-term real returns whilst smoothing the peaks and troughs of day-to-day market movements. This means that with profits investments remain a good choice for investors seeking steady growth from a spread of investments over the longer term with some downside protection. The benefits of smoothing and guarantees can provide advantages to with profits policyholders over other forms of investment."
Mr. Curmi concluded, "our wider message is that MSV With Profits policyholders have the added confidence of knowing they hold a safe, time-tested and tax-efficient investment through participation in the MSV With Profits Fund, a conservative and diversified portfolio of assets that embraces a robust investment management process and which has delivered consistent returns that compare well with those achieved from alternative investments but with relatively lower levels of volatility."