MAPFRE MSV Life p.l.c. registered a profit before tax of €14.6 million for the year ended 31 December 2023, compared to a restated €2.5 million registered for the previous year. Total shareholders’ funds amounted to €165.4 million at the close of 2023, reflecting an increase of 6.1% over the restated previous year.
On 1 January 2023, MMSV adopted two new accounting standards, IFRS 17 ‘Insurance Contracts’ and IFRS 9 ‘Financial Instruments’. The adoption of IFRS 17 required the restatement of the 2022 comparative figures.
Gross business written for financial year 2023 totalled €201.3 million, a decrease of 21.0% over the prior year, on account of lower demand for single premium With-Profits business, which was in line with expectations. Competition from bank deposits and government debt issues affected adversely the re-investment of maturing policies. On the other hand, MMSV met the challenges associated with the prevailing interest rate scenario by taking the opportunity to accelerate its product diversification efforts with the launch of short-term Unit- linked campaign products. These proved to be extremely popular with the retail investors looking for short term guaranteed income and capital products. Regular premium business results were also satisfactorily. Net claims incurred decreased to €261.6 million through the year compared to a prior year €289.7 million, largely as a result of a decline in maturing contracts. A proportion of these maturing contracts were subsequently re-invested in new medium to long-term contracts.
Commenting on these results, the Chief Executive Officer of MAPFRE MSV Life p.l.c., Etienne Sciberras, stated that “All lines of business contributed positively to the overall results. In 2023, the prevailing financial markets environment served as an additional tailwind as excess capital generated positive financial income. Mr Sciberras added that “The geopolitical and inflation risks are expected to persist throughout 2024, however the resiliency of Maltese economy should continue to sustain the demand for our financial solutions.”
Total assets increased by 2.1% to €2,319.7 million at the end of 2023. Net insurance contract liabilities, reinsurance contract liabilities and investment contract liabilities increased by 4.0%.
At the end of 2023, the solvency ratio remained above the regulatory solvency capital requirement and within the Company’s risk appetite. Given the current geopolitical situation and inflation levels, the economic outlook remains uncertain. The Board of Directors have reviewed the Company’s capital needs and recommended a €2million dividend be paid for financial year 2023.
Dr Gordon Cordina, Chairman of MAPFRE MSV Life p.l.c., concluded that, “Good progress continues being made in terms of the execution of its 2022-2024 strategic plan. During 2023, we launched a number of Unit Linked products in line with our product diversification strategy. We continue investing in our human capital and technological capabilities to better serve our policyholders and to offer financial solutions that meet the savings and investment needs of our customers across their lifecycle.
MAPFRE MSV Life p.l.c. (C-15722) is authorised by the Malta Financial Services Authority (MFSA) to carry on long term business under the Insurance Business Act. MAPFRE MSV Life p.l.c. is regulated by the MFSA.
