Middlesea Valetta Life Assurance registered a profit before tax of Lm3.27 million (EUR7.62m) for the year ended 31 December 2006. This represents an increase of 24 per cent over the previous year. Business Written increased by 28 per cent from Lm39.27 million (EUR91.5m) in 2005 to Lm50.36 million (EUR117.3m) in 2006, while the company’s Total Assets increased by 23 per cent from Lm250.2 million (EUR582.8m) in 2005 to Lm308 million (EUR717.4m) at the end of 2006.
The Board of Directors approved a resolution whereby differential rates of reversionary bonuses were declared in respect of with-profits plans held with MSV for the year ending 31 December 2006. These amounted to 4.05 per cent for the Comprehensive Life Plan (regular and single premium policies), 4.35 per cent in respect of the Comprehensive Flexi Plan (regular and single premium policies), 4.5 per cent under the Single Premium Plan and 4.5 per cent under the with-profits option of the MSV Investment Bond.
The Board also approved the declaration of a Terminal Bonus in respect of Comprehensive Life Plan (single and regular premium) policies that have been in force for more than 10 years. The Terminal Bonus will be paid on claims payable as a result of death or maturity between 1 January 2007 and the next bonus declaration, at a rate of 1.5 per cent for every year after the 10th year of the policy, subject to a maximum of 5 per cent. This Terminal Bonus will be paid on the value of the Policy Account as at the date of death or maturity.
On the “Old Series” Endowment and Whole Life policies, a reversionary bonus of 2.2 per cent of the basic sum assured plus bonuses was declared. Although no Terminal Bonus has been declared for such policies on claims arising out of death or maturity during 2007, any Terminal Bonus declared on the “Old Series” policies accumulated over previous years to date, shall remain payable on such claims occurring in 2007.
Finally, the Board also approved a reversionary bonus of 3.45 per cent on those Secure Growth policies that formed part of the portfolio of business transferred to MSV from Assicurazioni Generali SpA during 2000.