An improvement in the investment returns for the first half

Middlesea Valletta Life Assurance (MSV), a life insurance company in Malta, has registered an improved investment returns during the first half of 2009. This was due to a regain in the equity and bond markets, following a period of volatility between September 2008 and March 2009.

During the first half of 2009, business written accounted to E0.11m. Although this represents a reduction over the same period last year, MSV has experienced an increase in demand for protection policies and regular savings plans.

The volatility in financial markets resulted in a lower demand for the riskier type of savings-related polices, specially unit-linked policies, and a reduction in single premium investments. The bancassurance partnership with Bank of Valletta has performed well and remains MSV’s most important channel of distribution.

Due to an increase in the value of the investments held by MSV, the company’s total assets has increased by 5% from E843.02m to E883.92m.

The company’s gross investment income increased from a loss of E21.06m as of June 30, 2008, to an income of E8.20m for the same period in 2009. Its unrealised capital losses went down from E35.27m during the first six months of 2008 to E6.33m for the same period in 2009. Its administrative costs also declined from E3.03m in the first half of 2008 to E2.79m for the same period in 2009.

The company, for the six months ended June 30, 2009, has registered a profit before tax of E486,726. Accordingly, the shareholders of the company resolved to further increase the issued share capital, through the injection of new capital, from E41.75m to E44.25m, with effect from 31 August, 2009. The authorized share capital of MSV would be increased from E50m to E60m.