MAPFRE MSV Life declares 2019 bonuses

Last week, MAPFRE MSV Life p.l.c. announced the bonus rates for With Profits policies for the year ended 31 December 2019.

A Regular Bonus Rate of 2.85% was declared on the Company’s core products namely the Comprehensive Flexi Plan (regular and single premium policies), the Single Premium Plan and on the With Profits options of the Investment Bond, Retirement Plan and the Personal Pension Plan.

A Regular Bonus Rate of 2.75% was declared on the Comprehensive Life Plan (regular and single premium policies) whilst on the ‘Old Series’ Endowment and Whole Life policies, a Regular Bonus of 2% of the basic sum assured plus bonuses was declared.

The 2019 Regular Bonus Rates represent an increase of 0.50% from the 2018 declaration.

In addition, the Board also announced the declaration of a Final Bonus in respect of Comprehensive Life Plans (Single and Regular Premium), Comprehensive Flexi Plans (Single and Regular Premium) and Single Premium Plans that have been in force for more than 10 years. For the Comprehensive Life Plan (Regular Premium), a Final Bonus of 1.10% has been declared for every year in force after the 10th year of the policy whilst for the Comprehensive Flexi Plan (Regular Premium), a Final Bonus of 1% has been declared for every year in force after the 10th year of the policy.   

For Single Premium policies the Final Bonus is, for the first time, expressed as a combination of a flat percentage plus an additional percentage for every year in force after the 10th year of the policy. For the Single Premium Plan and the Comprehensive Flexi Plan (Single Premium) a flat Final Bonus Rate of 12.5% will be paid on the value of the policy account plus an additional percentage of 1% for every year in force after the 10th year of the policy, whilst for the  Comprehensive Life Plan (Single Premium), a flat Final Bonus Rate of 12.5% will be paid on the value of the policy account plus an additional percentage of 2% for every year in force after the 10th  year of the policy.

Final Bonuses will be paid on the value of the Policy Account as at the date of death or maturity between 1 April 2020 and 31 March 2021.

The Board also approved a Regular Bonus of 2.75% on 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 1.35% on the ALICO 78 policies and a Regular Bonus of 1.6% on the ALICO 66 policies which formed part of the portfolio of business transferred to MAPFRE MSV Life in 2011 from American Life Insurance Company (“ALICO”).

The MAPFRE MSV With-Profits Fund increased by 13.8% from €1.89 billion in 2018 to €2.15 billion at 31 December 2019. The total investment return of the Fund amounted to €222.9 million recovering strongly from the negative €43.1 million downturn in 2018.