MAPFRE MSV Life p.l.c. declares 2024 bonuses

On 20th March 2025, MAPFRE MSV Life p.l.c. (MMSV) declared the bonus rates for its With-Profits policies for the year ending 31st December 2024. The key highlight of the declaration was the approval of a 2.5% regular bonus (net of tax) on the company's core products. This bonus reflects the positive performance of the company’s With-Profits Fund, despite a mixed year in the broader financial markets.

Market overview and fund performance

The decision to declare the regular bonus is based on a solid year for mainstream investment assets, particularly equities and fixed income, both of which contributed positively to returns. Equities, particularly in the US market driven by technology stocks, experienced a notable rebound from the lows of 2022. While other developed markets saw more modest growth, their lower exposure to the tech sector limited their overall performance.

On the other hand, fixed income returns were more muted due to elevated long-term interest rates, which had a suppressive effect on returns in the latter half of 2024. Nevertheless, despite these mixed market conditions, the With-Profits Fund posted a positive net return of 4.3% for the year.

The fund’s smoothing mechanism, which is one of its key characteristics, helped cushion the impact of market fluctuations, ensuring that the returns were more stable and less volatile over time. This smoothing effect means that policyholders benefit from more predictable and steady returns, regardless of short-term market swings.

Bonus declaration and product coverage

MAPFRE MSV Life declared a 2.5% regular bonus on its core products, including the Comprehensive Flexi Plan, Single Premium Plan, and the With-Profits options of the Investment Bond, Retirement Plan, and Personal Pension Plan. Additionally, a 2.4% bonus was announced for the Comprehensive Life Plan. These bonus rates for the core products remained unchanged from 2023.

For policies within the ‘Old Series’ Endowment and Whole Life policies, the regular bonus declared is 2.0% of the basic sum assured, in line with the 2023 rate.

Final bonus details

In addition to the regular bonus, a Final Bonus was also declared for specific products, including the Comprehensive Life Plans, Comprehensive Flexi Plans, and Single Premium Plans. However, the final bonus is subject to certain eligibility criteria, including the requirement that the plan must be in force for over 10 years. The final bonus may also be influenced by factors such as whether the policy is a regular or single premium, and if any additional top-up contributions were made.

Final bonuses, however, are volatile and depend heavily on the investment performance of the With-Profits Fund. As such, the final bonus is not guaranteed and is subject to change, meaning it can be withdrawn or altered at any time.

Interim regular bonus for 2025

MAPFRE MSV Life also confirmed that the interim regular bonus for 2025 will remain at 1.5%, with the possibility of review at any time throughout the year.

With-profits fund overview

As of the end of 2024, the With-Profits Fund had €1.86 billion in assets under management, and more than 77,000 policies in force. This makes it one of the largest managed savings funds in Malta. The strength and size of the Fund enable it to make strategic investments in a diversified global asset portfolio, capitalizing on both local and international market opportunities. The fund’s long-term investment strategy and capital guarantee at maturity ensure it continues to be an attractive option for policyholders looking for steady growth with some level of protection against downside risks.

CEO's comments and economic outlook

Elvira Lopez de Lara Merida, CEO of MAPFRE MSV Life, stated that the bonus declaration was a testament to the smoothing effect of With-Profits policies, which protect policyholders from market volatility. She noted that the company’s diversified asset allocation and active management of the fund allowed it to benefit from the positive equity market performance, resulting in the 2.5% regular bonus on core products.

Looking ahead, Merida acknowledged that while the economic outlook remained positive, geopolitical uncertainty and elevated inflation could continue to put pressure on capital markets. She emphasized that the With-Profits policies offer a reliable investment solution in these uncertain times, with their smoothing mechanism and capital guarantees making them especially attractive for medium to long-term investors.

Looking forward

While the company’s prudent investment policy has helped deliver positive returns, MAPFRE MSV Life reminded policyholders that past performance is not a guarantee of future results. Investment returns are subject to market conditions, and both regular and final bonuses may vary over time.

Overall, MAPFRE MSV Life’s decision to declare a 2.5% regular bonus reflects the company’s sound investment strategies and commitment to offering its policyholders stable, long-term returns, even in challenging economic conditions.

MAPFRE MSV Life is authorized by the Malta Financial Services Authority (MFSA) to operate under the Insurance Business Act and is regulated by the MFSA.