MSV Life registered a profit before tax of €11.63 million for the year ended 31 December 2010, an increase of 52.2 per cent over 2009, while profit after tax in 2010 was €7.84 million compared to the profit after tax of €6.20 million recorded in 2009.

Business Written increased strongly by 18.3 per cent from €124.65 million in 2009 to €147.49 million in 2010 supported by business growth across all major classes of business particularly single premium participating contracts.

The MSV Group’s total assets, supported by strong premium growth and investment performance, increased from €999.24 million at the end of 2009 to €1,130.71 million at the end of 2010, while the Life Fund increased by 13.7 per cent from €879.20 million in 2009 to €1,000.44 million in 2010.

The value-of-in-force business increased by 4.4 per cent from €40.73 million in 2009 to €42.53 million in 2010. The value of in-force business reflects the after tax value of the projected future transfers to shareholders arising from policies in force at the end of the year.

The net investment income decreased from a gain of €61.02 million in 2009 to a gain of €56.80 million in 2010.

At the end of 2010, the level of excess assets stood at €68.79 million showing an excess of €28.45 million over the statutory solvency margin of €40.35 million.

Total shareholders’ funds at the close of 2010 amounted to €108.89 million, an increase of 1.6 per cent over the previous year.

MSV Group Chairman Roderick Chalmers commented, “I am pleased to be able to announce the best set of results registered by MSV Group to date. During 2010 investment conditions in both local and international markets were once again, very challenging and were characterised by continuing low interest rates, tightened fiscal conditions and widening credit spreads across the between eurozone member states.”

He added, “Against this background of uncertainty and a weakened euro, our investment performance was satisfactory and well underpinned both by the company’s conservative and diversified portfolio of assets, as well as by the rigorous and prudent investment management process which is so important in the management of life insurance companies.”

Mr Chalmers stated, “2010 was a very important year for MSV Life as the company moved rapidly to implement a Board mandated initiative to transform itself into a wholly self-sufficient, standalone company, ably led by its chief executive officer, David Curmi. A new senior management team has been put in place, with a number of important senior executives having been recruited during the year. The change of name and re-branding of the company was also successfully completed during the last quarter of 2010.”

Mr Chalmers added, “with total business written during the year of over €147 million, total assets of over €1.1 billion, more than 94,000 policies in force and total sums assured of more than €3.3 billion, MSV Life is Malta’s leading life insurance company and prospects for continuing growth and development are encouraging, both in the life assurance and in the long term savings and retirement areas. At its core, the thorough restructuring that took place in 2010 ensures a strong and independent future for the company.”

The shareholders of MSV Life, namely Bank of Valletta plc and Middlesea Insurance plc, are wholly committed to ensuring that MSV Life remains strongly capitalised at all times and well positioned for business growth. On 14 April 2010, an increase in the issued share capital of the company was effected through a capitalization of a dividend of €3.00 million. As a result, the issued share capital of MSV Group increased from €51.75 million to €54.75 million. Additionally on 11 May 2010 the company raised a subordinated loan of €6.00 million to further supplement its regulatory capital resources.

The Board of Directors of MSV Life approved a resolution whereby differential rates of regular bonuses were declared in respect of with-profits plans held with MSV Life for the year ending 31 December 2010. These amounted to 3.25 per cent for the Comprehensive Life Plan (regular and single premium policies), 3.45 per cent in respect of the Comprehensive Flexi Plan (regular and single premium policies) and 3.45 per cent under the Single Premium Plan. 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 Life from Assicurazioni Generali SpA during 2000.

Notwithstanding the prudent investment policy adopted by MSV Life, past performance is no guarantee for the future. Although with-profits investments offered by MSV Life have generally provided policyholders with satisfactory returns when compared with other similar investment products, in the light of the continuing uncertainty in the capital markets, investment returns could fluctuate further. Fair value movements and lower investment returns impinge directly on the rates of bonuses declared by MSV Life. Regular Bonuses are therefore expected to vary over the lifetime of participating policies.

MSV’s chief executive officer David Curmi stated, “The thorough corporate restructuring that we undertook during 2010 puts us on very firm ground to continue strengthening our position as the leader in the life insurance market in Malta and to look forward to the future with confidence. During 2011 we will focus on the development of a series of innovative products and new marketing initiatives in response to the evolving customer needs for life insurance and investment type products.”

Mr Curmi continued, “Our business objectives are very clear. We shall seek to continue to achieve above average profitability in terms of return on equity. Through a very prudent and conservatively oriented investment strategy we will strive to preserve the capital of our shareholders and the assets of our policyholders at all times. We are driven by an aspiration to excellence in all our actions and we will not compromise our highest standards of responsible corporate management. Finally, because we believe that the better our people the better is our business, we will constantly seek to enhance the skills and motivation of our people.

Mr Curmi added, “Our business philosophy and strategic objectives are geared towards earning the lifetime trust of all our stakeholders.”