MAPFRE MSV Life p.l.c. registers 2019 pre-tax profits of €14.5 million

MAPFRE MSV Life registered a profit before tax of €14.5 million for the year ended 31 December 2019, up 5.8% on the previous year 


MAPFRE MSV Life p.l.c. registered a profit before tax of €14.5 million for the year ended 31 December 2019, up 5.8% on the previous year where a €13.7 million profit before tax was generated.

Profit after tax amounted to €11.7 million, up 7.3% on the €10.9 million in the previous year.

Operating results were supported by a significant appreciation in asset values on the back of favourable market conditions as well as strong inflows of premium revenue across the Company’s range of insurance and investment products.

Gross premiums written for financial year 2019 totalled €282.9 million, 11.6% down on a prior year   €320.0 million, impacted by a lower demand for single premium business partially offset by a growing demand for longer-term regular premium savings and retirement products.

Net claims incurred increased to €210.1 million compared to a prior year €145.7 million due to higher maturities of medium-term single premium contracts. A large proportion of maturing contracts were subsequently re-invested in new medium-term contracts.

Total assets increased by 12.8% from €2,213.4 million at the end of 2018 to €2,497.1 million at the end of 2019, whilst net technical provisions (including investment contracts without DPF) increased by 14.3% from €2,013.9 million in 2018 to €2,301.8 million in 2019.

The value of in-force business, which projects future transfers to shareholders arising from policies in force at the end of the year, increased significantly by 17.4%, from a €62.6 million value in 2018 to €73.5 million in 2019.

This is attributable to the impact of new business inflows, strong investment returns, improved technical margins, low surrenders and improved mortality performance when comparing actual mortality to assumed mortality.

Total shareholders’ funds at the close of 2019 amounted to €147.4 million (2018: €160.0 million), a decrease of 7.9% over the previous year due to the distribution of prior year dividends,  yet well ahead of minimum solvency requirements.

The solvency ratio stood at 245% at the end of 2019.

The shareholders of MAPFRE MSV Life are wholly committed to ensuring that the Company remains adequately capitalised at all times and well positioned for both business growth and effective regulatory capital thresholds in place under the Solvency II framework.

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.

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