MAPFRE MSV Life p.l.c. registered a profit before tax of €16.6 million for the year ended 31 December 2021, up 10.7% on the previous year. Furthermore, following the shareholders' capital increase in March 2021, total shareholders' funds amounted to €221.7 million at the close of 2021, reflecting an increase of 37.4% over the previous year.
Gross premiums written for financial year 2021 totalled €325.1 million, an increase of 20.6% over the prior year €269.6 million, driven by a strong demand across all lines of business. At the same time, net claims incurred increased by 16.8% to €305.0 million through the year, largely as a result of a continuing trend which sees an increase in maturing medium-term single premium contracts. A large 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 "the economic recovery and increased levels of liquidity together with our value propositions underpinned by strong financial credentials continued to drive the demand for our products. MAPFRE MSV Life continues to be the preferred choice for thousands of policyholders when it comes to their long-term financial needs and aspirations. Our value proposition in the life protection, savings, investments and retirement space continue to offer a solution to the various financial needs associated with the different stages in our customers' lifecycle."
MAPFRE MSV Life p.l.c.'s total assets increased by 6.2% to €2,721.3 million at the end of 2021, whilst net technical provisions (including investment contracts without DPF) increased by 3.8% to €2,437.6 million. The value of in-force business, which projects future transfers to shareholders arising from policies in force at the end of the year, increased by 12.8% to €87.1 million in 2021. This is attributable to the impact of new business inflows, improved technical margins and improved mortality performance when comparing actual mortality to assumed mortality updated run rates.
The MAPFRE MSV With-Profits Fund stood at €2.25 billion at 31 December 2021, up from €2.18 billion in 2020, with growth driven both by operational cash-flows arising from new business as well as market returns on the differing asset classes held within the portfolios, partially offset by maturity outflows.
Reviewing developments for 2021, the Non-Executive Chairman of the Board of Directors of MAPFRE MSV Life, Dr Gordon Cordina observed that "the shareholders of MAPFRE MSV Life are wholly committed to ensuring that the Company remains adequately capitalised at all times and well positioned for business growth."
At the end of 2021, the solvency ratio stood at 226.1%. The increase in the solvency ratio is primarily attributable to the capital increase, increase in the retained earnings and the improvement in the capital markets during the year. The Directors have reviewed the Company's capital needs over the forthcoming medium term within the framework of Solvency II and recommended a net dividend of €2 million for financial year 2021.
Looking ahead, Mr. Sciberras indicated that, "Notwithstanding the recent challenges stemming from the war in Ukraine, the persistent COVID-19 concerns and the increase in inflation, we continue to maintain a positive outlook for the future. We are fully focused on the implementation of the strategic plan approved by the Board for the next 3 years. This plan maintains the customer at the centre of our business strategy, builds on our digital transformation and ambition, relies on the strength of our distribution network and the professionalism and dedication of our employees for its timely and effective execution."
Mr. Sciberras concluded, "The positive results achieved in 2021 are testament to our resilient and dynamic business model, the strength of our balance sheet and our shareholders' commitment to ensure that the Company remains adequately capitalised and well positioned for business growth. Our employees remain our greatest asset together with the loyalty of our customers who continue to choose MAPFRE MSV Life, reflecting trust in our brand and in the quality of our service proposition."
Dr Gordon Cordina reiterated the positive expectations of the shareholders in the Company's future performance: "We see great potential in the Maltese market, and are aiming for growth in new areas, underpinned by the unique ability of MAPFRE MSV Life to provide the necessary technical infrastructure and distribution network to make it happen".
The Board of Directors also expressed its gratitude and appreciation to the management and staff for their commitment and contribution to another satisfactory year, to intermediaries for their continued support and to the many loyal customers for placing their trust in MAPFRE MSV Life p.l.c.