Roderick E. D. Chalmers, chairman of Middlesea Valletta Life (MSV), announced that MSV registered a profit after tax of Lm1.52 million for the year ended 31 December, an increase of 17 per cent over the previous year.
During 2004 the shareholders of MSV have continued to show their commitment towards strengthening the financial stability of the company by increasing the issued and paid- up share capital from Lm6,300,000 to Lm8,600,000. The weighted average earnings per Lm1.00 share increased from 17c1 in 2003 to 19c5.
Mr Chalmers stated that during 2004, MSV continued to consolidate its position as the leader in the Maltese life insurance and long-term savings market. The increase in the issued and paid-up share capital of the company will enable MSV to ensure that it will have the financial resources required to deliver its ongoing business strategy, meet the reasonable expectations of policyholders and strengthen its solvency position.
Mario C. Grech, deputy chairman and CEO of Middlesea Valletta Life (MSV), stated that as a result of a strong demand for insurance related savings policies during 2004, MSV registered an increase in the gross written premiums of 60 per cent. Gross written premiums increased from Lm21.86 million in 2003 to Lm34.88 million in 2004.
2004 was characterised by an improvement and stabilisation in world markets leading to a gradual return of investor confidence. Investment income of MSV increased from Lm10.27 million in 2003 to Lm11.83 million in 2004. This improvement in investment return has enabled the company to increase its Reversionary Bonuses to its with-profits policyholders.
MSV’s total assets increased by 30 per cent from Lm142.06 million in 2003 to Lm184.23 million in 2004, while the long-term business provision increased by 32 per cent from Lm120.84 million in 2003 to Lm159.13 million in 2004.
David G. Curmi, general manager, explained that the significant increase in revenue was attributable to product innovation and the product strategy of the company as well as the strong distribution platform. During 2004, sales of the Investment Bond exceeded expectations while during the same year the company launched, in conjunction with BNP Paribas, its first capital guaranteed product, the Capital Guaranteed Bond.
Mr Curmi added that MSV is committed to continue focusing on product innovation to fulfill the evolving demands of its customers. MSV’s strategy is to offer its customers innovative products that offer the highest long term protection and returns commensurate with an acceptable level of risk and backed by high-quality service.
The company is also well-positioned to take on the challenges the pension reform will bring, particularly in the second and third pillar pension provision. Having established itself as the leading provider of life insurance and long-term savings products in the local insurance market, MSV is now seeking opportunities for overseas expansion, particularly in the Euro-.Med region. Considerable progress has already been achieved in the preparatory work for the establishment of a life operation in Italy.