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Positive six months for Middlesea Valletta Life During the first six months of 2009, Middlesea Valletta Life Assurance Co. Ltd. (MSV), Maltas largest life insurance company, registered a significant improvement in investment returns, as equity and bond markets started to regain their composure following a period of extreme volatility between September 2008 and March 2009.
Business written during the first six months of 2009 amounted to 50.11 million. Although this represents a reduction over the same period last year, MSV experienced an encouraging increase in demand for protection policies and regular savings plans. On the other hand, the volatility in financial markets, led to a lower demand for the riskier type of savings related polices, in particular unit-linked policies, whilst the subdued consumer confidence led to a reduction in single premium investments. The bancassurance partnership with Bank of Valletta p.l.c. continued to perform strongly and remains MSVs most important channel of distribution.
Total Assets increased by 5% from 843.02 million to 883.92 million. This increase was mainly due to an increase in the value of the investments held by MSV.
Gross Investment Income increased from a loss of 21.06 million as at 30 June 2008, to a an income of 8.20 million as at 30 June 2009, as unrealised capital losses reduced from 35.27 million during the first six months of 2008 to 6.33 million as at 30 June 2009. MSV continues to adopt a very prudent long-term investment strategy, which aims to preserve the capital value of its investments.
Administrative costs also reduced from 3.03 million as at 30 June 2008 to 2.79 million as at 30 June 2009. This was possible due to increased operational efficiencies.
MSV registered a profit before tax for the six months to 30 June 2009 of 486,726.
The shareholders of MSV, namely Bank of Valletta p.l.c and Middlesea Insurance p.l.c. are wholly committed to maintaining a strong capital position for the company, in order to sustain the business strategy of future growth, and to meet the new regulatory capital requirements for life companies which will come into effect on 1 January 2010. Accordingly, the shareholders of MSV resolved to further increase the issued share capital of the company from 41.75 million to 44.25 million, with effect from 31 August 2009, through the injection of new capital. With effect from the same date, the authorised share capital of MSV will be increased from 50 million to 60 million.
Through the combination of a strong brand, financial strength, product breadth, distribution reach, in particular the successful bancassurance partnership with Bank of Valletta p.l.c., MSV remains well poised to maintain its position as the leader in the individual protection and long term savings market in Malta. Whilst challenging economic times are clearly not yet over, the consistent performance and strong financial and operational base of MSV put it firmly on track for a positive financial year.
Middlesea Valletta Life Assurance Co. Ltd is authorised by the Malta Financial Services Authority to carry on long term business under the Insurance Business Act 1998.COM270809237
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