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Brighid Smyth
Head of Corporate Communications
For media queries only:
Tel:(01) 6147348

Mobile:086 8270905

Barbara Coyle
Corporate Communications Manager
For media queries only:
Tel: (01) 6197473

Mobile: Mobile:086 8371701
Press Team Fax: (01) 8741950

Annual Reports

Vhi Group report a net surplus of €45.5 million for year ending 31 December 2015

€1.38 billion paid in claims - an increase of 10%

Ageing Population and Increases in Chronic diseases means significant challenges for healthcare in Ireland

25th July, 2016 - Vhi today announced its annual results for the year ending 31 December 2015 recording a net surplus of €45.5 million and an improved reserves position of €521 million at year end. Vhi also recorded an increase in membership for the first time in 8 years and is now serving 1.068 million health insurance customers.

2015 was a landmark year for the Vhi Group in that Vhi Insurance DAC was authorised as a Non Life Insurance Company and Vhi Healthcare Ltd as an insurance intermediary by the Central Bank of Ireland. The newly authorised entities commenced trading on the 31 July 2015. Securing authorisation has placed Vhi on the same regulatory footing as others operating in the market and has also facilitated the company's move into new markets such as Life Insurance, an offering introduced by Vhi in May 2016.

The key financial results for Vhi Healthcare during 2015 were as follows:

  • After tax results to the 31st December 2015 showed a net surplus of €45.5 million for Vhi's consolidated business activities compared with €54.5 million in 2014.
  • Gross Earned premium for 2015 totalled €1.428 billion, slightly down compared with €1.451 billion the previous year. Income from products other than our health insurance business amounted to €27.8 million during the year, while income from investments at €5.5 million was down significantly on 2014 owing to reduced bond yields.
  • At the end of December 2015 Vhi had free reserves of €521.6 million representing a significant improvement of €55.3 million or 12% compared with the previous year's position. This strengthening of free reserves can be attributed to a number of key business initiatives taken by Vhi over recent years including improvements in claims and provider management. In addition, our solvency positon was strengthened by raising €90 million subordinated debt from Berkshire Hathaway.
  • Total gross claims paid in 2015 came to €1.378 billion, up by 10% compared with €1.248 billion in 2014. The increase in claims costs on the previous year reflects the full effect of significant increases in Public Hospital Charges introduced by the Government in 2014 as well as other factors including increased demand for treatment and procedures from our ageing membership.