MSV Life registers pre-tax profits of €14.26 million

MSV Life plc (“MSV Life” and “MSV Group”) registered a profit before tax of €14.26 million for the year ended 31 December 2014 sustaining the profitability patterns emerging in the prior year which saw the Group report a €15.48 million profit before tax. In 2014 the Group recorded an after-tax profit of €10.41 million.

Gross premiums written (including investment contracts without DPF) 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 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 inforce 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 purposesstood 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 Regula- tion 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.

Chairman of MSV Group, John Cassar White, stated “I am pleased to be able to announce another strong set of results registered by MSV Group for 2014.Results were supported by the continuing resilience and upturn in the equity and bond markets which further strengthened on prior year levels as we went through another full year cycle of historically low interest rates.MSV Life’s diversified investment portfolio, the robust investment management process, the quality assets that we hold in the portfolio as well as our tactical positions contributed favourably to our results in 2014. MSV has a strong track record of investment management and we will continue to manage our balance sheet prudently, ensuring that MSV Life remains adequately capitalised at all times and well positioned for both business growth and the forthcoming Solvency II regime. MSV Life remains focused on the generation of capital and its disciplined allocation.”

Mr Cassar White 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 2014 we progressed on our major IT programme which will involve the migration of our business to the latest technology in our business. This will enable us to 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.