MSV Life p.l.c. registered a profit before tax of €15.6 million for the year ended 31 December 2015, up 9.1% on the previous year where a €14.3 million profit before tax was generated. Profit after tax is recorded at €10.1million, down 2.9% on the previous year as a result of a higher effective tax charge.

Operating results were supported by stronger inflows of premium revenue across the Company's range of insurance and savings products resulting from stronger customer demand.

Gross premiums written for financial year 2015 increased by 44.8% from €152.4 million to €220.8 million. This was mainly due to an increased demand across all products in particular single premium savings contracts and life protection business as new business sales increased by 59% from €115.7 million to €183.5 million.

Claims climbed to €109.2 million through the year compared to a prior year €80.2 million. During the year the Company had a higher mix of maturing medium-term single premium contracts, a large proportion of which has subsequently been re-invested by policyholders in new medium-term contracts.

The MSV Life's total assets increased by 11.8% from €1,559.5 million at the end of 2014 to €1,743.9 million at the end of 2015, whilst net technical provisions (including investment contracts without DPF) increased by 12.7% from €1,385.4 million in 2014 to €1,561.1 million in 2015.

The value of in-force business, which projects future transfers to shareholders arising from policies in force at the end of the year, decreased by 4.3% from €55.8 million in 2014 to €53.4 million in 2015.  This is partially attributable to revisions made to future transfers arising as a result of new reinsurance treaties now in place. These revisions lowered the value of in-force business yet contributed positively to the year's technical surplus and underlying profitability.

Equity and bond markets produced robust yet somewhat weaker returns than those generated in prior year with net investment income decreasing from €119.4 million in 2014 to €91.2 million in 2015. Investment performance was underpinned by the Company's conservative and diversified portfolio of assets, as well as by the rigorous and prudent investment management process that is so important in the management of life insurance companies.

At the end of 2015 the level of net admissible assets for statutory solvency purposes stood at €95.2 million (2014: €89.4 million), which represents an excess of €31.2 million (2014: €33.0 million) over the 'required margin of solvency' as stipulated in the Insurance Business Regulation of €64.0 million (2014: €56.5 million). 

Total shareholders' funds at the close of 2015 amounted to €150.2 million (2014: €147.1 million), an increase of 2.1% over the previous year.

The net asset value per share has increased from €6.72 as at the end of 2014 to €6.86 per share driven by the underlying profitability of the business.

The Chairman of MSV Life, Mr. John Cassar White stated, "these set of results are the best ever registered by MSV Life since its establishment in 1994, despite the difficult investment conditions during 2015 which were characterised by continuing low yields, volatile equity markets, low inflation and geo-political tensions resulting in weaker unrealised gains recorded on asset classes when compared to the prior year. This investment environment is not ideal for a long term investor like MSV Life."        

Mr. Cassar White stated, "strong capitalisation is necessary to support the business strategy of MSV Life, whilst at the same time meeting in full the requirements of policyholders and the regulator. The shareholders of MSV Life, namely MAPFRE Middlesea p.l.c and Bank of Valletta p.l.c. are wholly committed to ensuring that MSV Life remains adequately capitalised at all times and well positioned for both business growth and the new Solvency II regime. MSV Life remains focused on the generation of capital and its disciplined allocation."

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 2015. These amounted to 3.15% for the MSV Comprehensive Life Plan (regular and single premium policies), 3.25% in respect of the MSV Comprehensive Flexi Plan (regular and single premium policies), 3.25% under the MSV Single Premium Plan and 3.25% under the with-profits options of the MSV Investment Bond and of the MSV Retirement Plan.  On the 'Old Series' Endowment and Whole Life policies, a Regular Bonus of 2.4% of the basic sum assured plus bonuses was declared.

In addition, the Board also approved the declaration of a Final Bonus in respect of the Comprehensive Life Plan (single and regular premium) and the Comprehensive Flexi Plan (single and regular premium), for policies that have been in force for more than 10 years. The Final Bonus will be paid on claims payable as a result of death or maturity between 1 March 2016 and the next bonus declaration, at a rate of 2.0% for every year after the 10th year of the policy capped at the rate of 7.5%. This final bonus will be paid on the value of the Policy Account as at the date of death or maturity.

The Board approved a Regular Bonus of 3.15% on those Secure Growth policies which formed part of the portfolio of business transferred to MSV Life from Assicurazioni Generali S.p.A. during 2000. Finally the Board also approved a Regular Bonus of 1.75% on the Alico 78 policies and a Regular Bonus of 2.00% on the Alico 66 polices which formed part of the portfolio of business transferred to MSV Life in 2011 from American Life Insurance Company ("ALICO").

The Chief Executive Officer of MSV Life, David G. Curmi, stated, "our results for 2015 are evidence of the success of our strategies as we are experiencing increased demand across all our product groupings as customers continue to choose MSV Life, reflecting trust in our brand and in the quality of our service proposition. However, our strength in the market derives not only from the value of our products and strong financial credentials but also from the very responsible manner in which we manage and conduct our business"

Mr. Curmi added, "going forward we will maintain strong focus on our customers by continuously assessing our business processes and operations in order to provide good value and excellent service. To this end we will continue to invest and innovate in information technology. During 2015 we progressed on our major IT programme which will involve the migration of our business to the latest technology. This will enable us offer superior levels of service to our customer base. In tandem we have a number of initiatives lined up to strengthen further our digital platform and widen our digital marketing strategy."

The Board expressed its gratitude and appreciation to the management and staff for their commitment and contribution to another satisfactory year, to intermediaries for their continued support and to the many loyal customers for placing their trust in MSV Life.