HSBC Life registers €12.6 million pre-tax profits

In a statement issued on Monday HSBC said that the profit represents a 7% increase over 2009, “as a result of better performance of shareholders’ investment income and an increase in premium income.”

In addition, total assets increased by 15% from €470 million in 2009 to €543 million at the end of 2010.

James Hewitson, recently appointed Managing Director of HSBC Life Assurance (Malta) Ltd, commented: “2010 has been a very challenging year, characterised by pressure on profitability as a consequence of a general slowdown in economic activity, continued low interest rates and substantial volatility in equity and bond markets which have inevitably impacted investment performance. HSBC Life has a prudent investment strategy in place and holds a conservative and diversified investment portfolio which enabled the overall performance of our life business to remain resilient despite market conditions”.

“HSBC Life remains the only company in Maltato declare an element of its With-Profits bonus rate annually in advance and as a result of strategies implemented to strengthen its With-Profits reserves was able to retrospectively increase the declared net of tax bonus rate,” the company said.

“This was done notwithstanding the ongoing market turmoil and unstable investment performance. The bonus rate of 2.0% announced in January 2010 increased to 2.5% at year-end, paying out €5.8 million in bonuses during the year. In addition, our Unit-Linked policyholders saw strong returns with assets under management growing by 24.5% to €131.2 million during 2010.”

“During the year, HSBC Life completed several initiatives aimed at meeting the constantly evolving protection needs of HSBC’s customers. In September, an Immediate Life Cover product was launched, allowing customers to purchase life cover up to a sum assured of €150,000 with the benefit of limited underwriting. This product is the first of its kind in Maltaand has been very well received by both new and existing policyholders.”

The Company said it expects to continue its growth during 2011 “leveraging on the excellent financial planning capabilities of HSBC Bank and the continued focus on satisfying customers’ need for protection and long term savings."”

In March 2011 HSBC Life Assurance (Malta) Ltd will be celebrating its 15^th Year Anniversary and currently has more than 70,000 policyholders and is covering more than €3.7 billion in total sums assured.