1 August 2023
Adjustments in Market Value Reduction
With effect from 1st August 2023, MAPFRE MSV Life (MMSV) has adjusted the level of Market Value Reduction (MVR) on With Profits surrender transactions.
The application of a Market Value Reduction became necessary in August 2022 due to the significant fall in the values across the mainstream asset classes during the first half of 2022 and the prevailing market uncertainty.
MAPFRE MMSV Life has regularly reviewed market performance affecting the With Profits (WP) Fund to monitor the ongoing appropriateness of MVRs. In this regard, given the recent positive investment performance of the MMSV With Profits Fund, MMSV has adjusted the level of MVRs applied across the With Profits product range as follows:
- MVRs have been completely removed on Comprehensive Life Plan (Regular Premium).
- MVRs have been removed on Single Premium policies and top-up premiums which have been in force for at least 10 years.
- MVRs have been removed on the other regular premium policies which have been in force for at least 12 years.
- Reduced MVRs have been applied on the remaining policies.
The MMSV With Profits Fund is invested in a diversified range of assets including mainstream equities, fixed interest and property assets. During 2023, there has been an upturn in equity performance. However, bond prices have remained significantly below their value a year ago. Overall, the WP Fund has delivered a positive return in the first half of 2023.
We will continue to monitor financial markets and their impact of the MMSV With Profits Fund and will update Market Value Reductions accordingly to maintain fairness between the policyholders who leave their policy in force until maturity and those who choose to surrender their policy prior to the policy maturity date.
Etienne Sciberras
Chief Executive Officer
