Middlesea Valetta Life Assurance registered a profit after tax of e1.92 million for the year ended 31 December 2008, a decrease of 63 per cent over the 2007 result. Business Written decreased by 19 per cent from e135.91 million in 2007 to e109.70 million in 2008, while the company’s total assets increased marginally from e832.25 million in 2007 to e843.02 million at the end of 2008.

Chairman of MSV Roderick Chalmers stated, “MSV’s results for the year have to be seen in the context of the unprecedented financial turmoil that occurred during 2008. MSV’s core insurance operations and investment portfolio, which, at year end, amounted to over e777 million, displayed resilience in the face of the very adverse market conditions, and the company was therefore in a position to register a post-tax profit despite having had to absorb fair value mark-downs on its investment portfolio.”

Mr Chalmers added, “This was by far the most difficult year for MSV since its establishment in 1994. During 2008, the insurance industry internationally suffered from steeply falling stock market valuations and dramatically widening bond spreads. The direct impact of the crisis on MSV was contained because the company holds a defensively positioned and widely diversified investment portfolio of quality assets. Furthermore, MSV (as with the rest of the Middlesea Group) had no direct exposure whatsoever to any of the toxic assets that were one of the root causes of the crisis.” Mr Chalmers stated, “the asset and currency mix, geographical spread and asset quality mean that MSV’s investment portfolio is well positioned to capture the upturn in investment markets as and when this occurs”.

The Board of Directors of MSV approved a resolution whereby differential rates of regular bonuses were declared in respect of with-profits plans held with MSV for the year ending 31 December 2008. These amounted to 3.65 per cent for the Comprehensive Life Plan (regular and single premium policies), 3.75 per cent in respect of the Comprehensive Flexi Plan (regular and single premium policies), 3.8 per cent under the Single Premium Plan and 3.8 per cent under the with-profits option of the MSV Investment Bond. On the ‘Old Series’ Endowment and Whole Life policies, a Regular Bonus of 2.2 per cent of the basic sum assured plus bonuses was declared. Finally, the Board also approved a regular bonus of 3.45 per cent on those Secure Growth policies which formed part of the portfolio of business transferred to MSV from Assicurazioni Generali S.p.A. during 2000. MSV will shortly be sending Policy Account and Bonus Statements to all policyholders holding with-profits investments with the company.