MAPFRE MSV Life registered pre-tax profits of €15 million in 2020, up 2.8 per cent on the previous year, an achievement that newly appointed CEO, Etienne Sciberras, said could “only be achieved through the dedication and professionalism of our staff and the loyalty of our customers”.
The CEO commented on the hardships the life insurance market in Malta faced in 2020 due to the prolongation of the low interest rate scenario and the outbreak of the pandemic early in the year.
“Demand for With Profits single premium contracts softened on account of a drop in investment returns. This was contrasted by activity in new regular premium and retirement savings products, driven by improved fiscal incentives within an underlying increase in investor awareness of the importance of saving to support retirement,” he stated.
Looking to the year ahead, Mr Sciberras said the company will reinforce its strong customer focus through continuous improvements in business processes and operations underpinned by digital investment and innovation.
In 2020, a new distribution portal for Protection Business was rolled out as part of a new Life Administration System project the company is implementing.
From a market perspective, the CEO said “The outlook is one of cautious optimism despite the deterioration in economic conditions due to the COVID-19 pandemic. While general economic recovery will likely need to extend beyond 2021, demand for protection, savings and investment products in Malta is expected to remain strong.”
In his concluding remarks, Mr Sciberras said that 2020 has shown “the resilience of our business model, the strength of our balance sheet in times of unprecedented social, economic and market upheavals, and our shareholders’ commitment to ensure that the company remains adequately capitalised and well positioned for business growth.”
Dr Gordon Cordina, who was appointed Non-Executive Chairman of the Board of Directors in March 2021, reflected on the results achieved in 2020, saying “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.”
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