The Board of Directors of MAPFRE MSV Life p.l.c. approved a resolution whereby differential rates of Regular Bonuses were declared in respect of With Profits plans held with MAPFRE MSV Life for the year ended 31 December 2017. These amounted to 3.10% in respect of the Comprehensive Flexi Plan (regular and single premium policies), 3.10% under Single Premium Plan, 3.10% in respect of the Personal Pension Plan, 3.10% under the With Profits options of the Investment Bond and of the Retirement Plan and 3% for the Comprehensive Life Plan (regular and single premium policies). On the ‘Old Series’ Endowment and Whole Life policies, a Regular Bonus of 2.25% of the basic sum assured plus bonuses was declared.
In addition, the Board also approved the declaration of a Final Bonus in respect of the Comprehensive Life Plan (single and regular premium) and the Comprehensive Flexi Plan (single and regular premium), for policies that have been in force for more than 10 years. The Final Bonus will be paid on claims payable as a result of death or maturity between 1 March 2018 and the next bonus declaration, at a rate of 2.50% for every year after the 10th year of the policy, capped at the rate of 10%. This final bonus will be paid on the value of the Policy Account as at the date of death or maturity.
The Board also approved a Regular Bonus of 3% in respect of those Secure Growth policies which formed part of the portfolio of business transferred to MAPFRE MSV Life from Assicurazioni Generali S.p.A. during 2000. Finally the Board also approved a Regular Bonus of 1.6% on the ALICO 78 policies and a Regular Bonus of 1.85% on the ALICO 66 polices which formed part of the portfolio of business transferred to MAPFRE MSV Life in 2011 from American Life Insurance Company (“ALICO”).
The Chairman of MAPFRE MSV Life, Mr. John Cassar White stated, “major global developed economies grew modestly during 2017. Whilst equity markets delivered strong positive returns with emerging markets outperforming developed markets, Government bond markets were held back by rising long-term interest rates, leading to weak returns. Despite the low yield environment that we operate in our With Profits customers will benefit from another year of good investment returns.
The MAPFRE MSV With Profits Fund performed well in 2017 delivering a net investment return of 3.85% compared to 4.94% in the previous year. During 2017, MAPFRE MSV With Profits policyholders have benefitted from the Company’s conservative and diversified portfolio of assets, the active but prudent management of the Fund, the geographical spread and the rigorous and prudent investment management process which is so important in the management of With Profits Funds. It also means that our With Profits customers have continued to see steady growth on their investments over the long-term, well in excess of inflation.”
The Chief Executive Officer of MAPFRE MSV Life, Mr. David G. Curmi, stated, “by the end of 2017 the MAPFRE MSV With Profits Fund had assets under management of €1.8 billion, increasing 12% over 2016 mainly due to the stronger inflows of single premium savings. With over 80,000 policies in force, the MAPFRE MSV With Profits Fund is one of the largest managed savings funds in Malta. The size and strength of our Fund allows us to invest in a very wide range of assets spread across many markets. The objective of the MAPFRE MSV With Profits Fund is to offer competitive long-term real returns by smoothing the peaks and troughs of day-to-day market movements whilst at the same time providing an underlying capital guarantee. This means that With Profits investments remain a good choice for investors seeking steady growth from a spread of investments over the longer term with some downside protection. In these uncertain times the benefits of smoothing and guarantees can provide advantages to With Profits policyholders over other forms of investment.”
Mr. Curmi concluded, “our wider message is that MAPFRE MSV With Profits policyholders have the added confidence of knowing they hold a safe, time-tested and tax-efficient investment through participation in the MAPFRE MSV With Profits Fund, a conservative and diversified portfolio of assets that embraces a robust investment management process and which has delivered consistent returns that compare well with those achieved from alternative investments but with relatively lower levels of volatility.”
Notwithstanding the prudent investment policy adopted by MAPFRE MSV Life, past performance is no guarantee for the future. Although the MAPFRE MSV With Profits Fund has generally provided policyholders with satisfactory returns when compared with other similar investment products, in the light of the current uncertainty in the capital markets, investment returns could fluctuate further. Fair value movements and investment returns impinge directly on the rates of bonuses declared by MAPFRE MSV Life. Regular Bonuses are therefore expected to vary over the lifetime of the policy whilst Final Bonuses are likely to be highly volatile and very dependent on the investment performance of the Company.
MAPFRE MSV Life p.l.c. (C-15722) is authorised by the Malta Financial Services Authority to carry on Long Term Business under the Insurance Business Act, 1998. Investment returns can go down as well as up and the past is not necessarily a guide to future performance. Changes in the rate of exchange of currencies may also affect the value of investments.
Com. No: MSV020318.
