Bank of Valletta yesterday announced that it has purchased from Münchener Rückversicherungs-Gesellschaft (Munich Re), their 10 per cent shareholding in Middlesea Valletta Life Assurance Company Limited (MSV), consisting of 860,000 ordinary shares. Munich Re has chosen to concentrate its investment in Malta through the Middlesea Group holding company, Middlesea Insurance plc. Concurrently with the above transaction, BOV has purchased from Middlesea Insurance plc a one per cent shareholding in MSV, consisting of 86,000 ordinary shares.
Following these purchases, Bank of Valletta plc now holds 50 per cent of MSV’s total equity, represented by 4,300,000 ordinary shares of one Maltese lira each fully paid up. The bank will, together with Middlesea Insurance plc, have joint control of MSV in what is now effectively a joint venture between the bank and Malta’s largest indigenous insurance company.
Commenting on this development, BOV chairman, Roderick Chalmers said, “We are delighted to announce this new level of investment by Bank of Valletta in Middlesea Valletta. BOV’s relationship with Middlesea Insurance goes back a number of years. Together with Middlesea Insurance and Munich Re, we had set up Middlesea Valletta in 1994. We look forward to continued work with Middlesea in a spirit of partnership on the continuing development of Middlesea Valletta”.
Mr. Chalmers added, “On the formation of Middlesea Valletta in 1994, BOV was the first bank in Malta to start offering life assurance products through its branch retail network – a milestone in transforming BOV’s operations from traditional retail banking towards the provision of financial services and products. Bank of Valletta and Middlesea had effectively introduced the bancassurance concept to Malta,” said Mr Chalmers.
The chairman said with policyholders’ account provisions of over Lm180 million, MSV is today considered to be the leading Maltese provider of life assurance products. “The bank’s investment in this company has reaped the desired benefits, and today Bank of Valletta is publicly giving a vote of confidence in the future prospects of Middlesea Valletta by increasing our level of investment in this company to 50 per cent,” concluded Mr Chalmers.
Tonio Depasquale, chief executive officer of Bank of Valletta said that the provision of an integrated wealth management service which also includes life assurance and investment products is an important business pillar for BOV. “At Bank of Valletta we recognise that each individual’s savings, investments and protection requirements are unique. Our commitment is to work with our customers to identify individual portfolio requirements and agree on how best to satisfy those needs. The bank’s investment in Middlesea Valletta will support BOV at an operational level, enabling us to continue to increase the effectiveness with which we provide service to our customers”.
Mr Depasquale said that BOV will be leveraging this increased investment so as to generate more business. The investment in MSV will support BOV in developing new business areas, contributing towards the sustained growth and expansion of both MSV’s and Bank of Valletta’s operations.
He said that BOV was actively investing in strengthening the wealth management dimension of its brand. In this regard, the bank is actively participating in shaping developments in the market in areas that have growth potential, including pensions and other insurance services.
Mario Grech, Chairman and Chief Executive of Middlesea Insurance plc welcomed the transactions, saying that he looked forward to continuing to develop the excellent relationships with Bank of Valletta for the mutual benefit of all shareholders concerned.