Meeting with Etienne Sciberras, the CEO of MAPFRE MSV Life, at the company’s offices in Floriana, one can’t help but feel the weight of history and the promise of future growth. As the company celebrates its 30th anniversary, Sciberras is both reflective and forward-looking, eager to discuss how MAPFRE MSV Life plans to build on its success and navigate the next phase of its evolution.
“Over the past three decades, MAPFRE MSV Life has built an enviable reputation for expertise, reliability, and stability,” Sciberras begins, his tone both proud and determined. “However, to maintain our position in the coming years, we recognize the need to evolve in response to changing customer expectations, market dynamics, and upcoming legislation and regulation.”
The company’s journey began in 1994 with three main shareholders: Middlesea Insurance (51%), Bank of Valletta (39%), and Munich RE (10%). Over the years, the shareholding evolved, and for the past decade and a half, the main shareholders have been MAPFRE Middlesea Insurance (50%) and Bank of Valletta (50%). This partnership has been instrumental in the company’s success. “Having two major players as our institutional shareholders has been crucial,” Sciberras explains. “MAPFRE SA, as a global insurer, provides us with brand recognition, access to resources, and expertise across the group, opening up numerous opportunities for growth and improvement in technology, processes, and expertise. Meanwhile, Bank of Valletta, the largest bank on the island, brings in-depth knowledge of the local market, proximity to the community, and a professional workforce.”
Looking ahead, Sciberras emphasizes the importance of building on the company’s past while continuing to invest in technology and people, diversifying product offerings, and maintaining a customer focus. “Our history has shaped us, and while we’ve faced challenges, we’ve also learned valuable lessons. To thrive over the next 30 years and beyond, continuous renewal is essential,” he says.
The company’s financial performance underscores its strong position for future growth. In 2023, MAPFRE MSV Life reported a profit before tax of €14.6 million, up from €2.5 million in 2022. With the largest managed savings asset portfolios on the island, totalling over €1.9 billion, and a dedicated workforce of around 100 people, the company is well-equipped to thrive in a fast-changing environment.
Initially, MAPFRE MSV Life’s primary focus was on life insurance, offering protection policies to complement mortgage loans. Malta’s high home ownership rate continues to drive demand in this line of business. However, the company also recognizes the need to educate customers on the role of life insurance as a financial planning tool. “We need to educate ourselves and our customers on the role of life insurance as a financial planning tool,” Sciberras notes. Over the years, as customers’ needs evolved, so did the company’s product offerings. Many younger customers engage with MAPFRE MSV Life when starting a family, seeking protection for their loved ones. As they progress in life, they become more aware of their savings, investment, and retirement needs, and the company provides solutions to meet these long-term aspirations.
Financial education is a crucial part of the company’s strategy. Sciberras stresses the importance of understanding the benefits of thinking long-term and starting early. “Pension savings, for instance, is still in its infancy in Malta, and more needs to be done to promote sustainable and adequate pensions,” he says. Voluntary Occupational Pension Schemes (VOPS) could significantly improve pension savings. While there has been an increase in VOPS uptake, it remains a niche market, and further measures are needed to make it mainstream.
“Pensions must be viewed in terms of both sustainability and adequacy,” Sciberras adds.
Today, MAPFRE MSV Life offers a range of financial solutions to meet various customer needs. The company’s products cater to different risk profiles, from With-Profits based products with capital guarantees to Unit Linked products for those seeking higher returns. Regular savings plans and single premium plans make savings and investment accessible to everyone.
Technology is a cornerstone of MAPFRE MSV Life’s strategy. The company is close to completing a major strategic project: transitioning to a new core solution for its policy administration system. This will enhance customer experience and efficiency. “Approximately 60% of policy applications currently go through a ‘straight-through process’ via automated underwriting, a significant improvement from the manual process used in 1994,” Sciberras explains. “Our ambition is to increase this rate even further in the near future. Once the new system is fully operational, we look forward to more innovative ways to interact with customers, streamline processes, and leverage other capabilities.” While the company’s distribution channels will remain largely physical, technology will enable a stronger digital presence, gradually transforming the traditionally transactional insurance sector into a more relationship-based one.
Beyond technological advancements, Sciberras emphasized MAPFRE MSV Life’s commitment to community engagement through a robust corporate social responsibility program. The company supports a variety of organizations across the arts, culture, sports, and environmental sectors. Additionally, a volunteering program allows employees to contribute to social causes that align with the company’s values. “We are very aware of our role in the community,” Sciberras stated, underscoring the importance of these initiatives.
The conversation also touched on the significance of the workforce in driving the company’s success. Sciberras proudly highlighted the diversity within the team, which comprises a number of nationalities. “Our 100-strong workforce is integral to our success,” he said, adding that this diversity positions the company well for continued growth. The well-being of employees, the importance of distribution partners, and the company’s societal role are all key considerations for MAPFRE MSV Life.
As the discussion drew to a close, Sciberras expressed gratitude to the company’s stakeholders. “I’d like to thank our past and present shareholders, directors, management, employees, tied insurance intermediaries, and all our customers for trusting and being with us over this 30-year journey,” he said. With a strong foundation and a clear vision for the future, MAPFRE MSV Life is poised for continued growth and value delivery.
In parting, Sciberras conveyed his enthusiasm for the future, stating, “We are in a very good position to keep growing, and we look forward to continuing to deliver value and serve our community.”