Mapfre MSV Life plc registered a profit before tax of €13.7 million for the year ended December 31, 2018, up 11.4 per cent on the previous year where a €12.3 million profit before tax was generated. Profit after tax is recorded at €10.9 million, up nine per cent on the €10 million in the previous year.
Operating results were supported by strong inflows of premium revenue across the company’s range of insurance and investment products resulting from stronger customer demand.
Gross premiums written for financial year 2018 increased by 10.7 per cent from €289.2 million to €320 million.
Net claims incurred increased to €145.7 million through the year compared to the previous year’s €137.4 million largely because of an increase in maturing medium-term single premium contracts. A large proportion of maturing contracts were subsequently reinvested in new medium-term savings contracts. In aggregate, the balance on the long-term business technical account increased to €13.4 million from the previous year’s €11.8 million as a result of a technical result improvement well supported by strong business growth.
Total assets increased by 4.6 per cent from €2,116.8 million at the end of 2017 to €2,213.4 million at the end of 2018, while net technical provisions (including investment contracts without DPF) increased by five per cent from €1,918.8 million in 2017 to €2,013.9 million in 2018.
The value of in-force business, which projects future transfers to shareholders arising from policies in force at the end of the year, increased by 0.3 per cent from €62.4 million in 2017 to €62.6 million in 2018.
Total shareholders’ funds at the close of 2018 amounted to €160 million (2017: €161.2 million), a decrease of 0.7 per cent over the previous year yet well ahead of minimum solvency guidelines.
The directors recommended the payment of a final net dividend of €10.94 million (2017: €12.30 million) and an interim special net dividend for 2019 of €16.35 million which is being appropriated out of retained profits generated prior to financial year 2018.
The MAPFRE MSV With-Profits Fund stood at €1.89 billion at December 31, 2018 (2017: €1.79 billion). The total investment return of the fund amounted to a negative €43.1 million down from a positive €63.9 million in 2017 while the net investment return after fees was a negative 2.15 per cent compared with a positive 3.85 per cent in 2017.
Mapfre MSV Life plc is authorised under the Insurance Business Act, Cap 403 of the Laws of Malta and regulated by the MFSA.
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