MSV Life said today that it made a profit before tax of €14.26 million in 2014, from €15.48 million in the previous year.
Gross premiums written for financial year 2014 increased by 40.2% from €111.32 million to €156.05 million. This was mainly due to an increased demand across all products in particular life protection business and single premium savings contracts, the company said.
The MSV Group’s total assets increased by 13.7% from €1,372.10 million at the end of 2013 to €1,559.45 million at the end of 2014, whilst the net technical provisions (including investment contracts without DPF) increased by 13.6% from €1,218.98 million in 2013 to €1,385.44 million in 2014.
In 2014, the value of in-force business, disclosed as an intangible asset, increased by 13.3% from €49.21 million in 2013 to €55.77 million. The value of in-force business reflects the value of the projected future transfers to shareholders arising from policies in force at the end of the year.
The resilience and upturn in equity and bond markets produced stronger returns than those generated in prior year with net investment income increasing from €98.19 million in 2013 to €119.38 million in 2014.
At the end of 2014 the level of net admissible assets for statutory solvency purposes stood at €89.43 million (2013: €82.92 million), which represents an excess of €32.97 million (2013: €33.27 million) over the ‘required margin of solvency’ as stipulated in the Insurance Business Regulation of €56.46 million (2013: €49.65 million).
Total shareholders’ funds at the close of 2014 amounted to €147.13 million (2013: €135.13 million), an increase of 8.9% over the previous year.
The net asset value per share has increased from €6.17 as at the end of 2013 to €6.72 per share driven by the underlying profitability of the business.
The Board of Directors of MSV Group 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 December 31, 2014. These amounted to 3.15% for the MSV Comprehensive Life Plan (regular and single premium policies), 3.35% in respect of the MSV Comprehensive Flexi Plan (regular and single premium policies), 3.35% under the MSV Single Premium Plan and 3.35% 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), 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 January 2015 and the next bonus declaration, at a rate of 1.5% for every year after the 10th year of the policy. This final bonus will be paid on the value of the Policy Account as at the date of death or maturity.
The Board also 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. 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”).