Vhi Group announces strong Financial Results for year end 31st December 2017
Net Surplus of €75.3 million
Gross Earned premium at year end €1.480 billion
Total Gross Claims Paid €1.329 billion
Growth in membership numbers to 1.075 million
Profits continue to be reinvested in customers with Vhi announcing a further 2% price reduction from July 1st 2018
1 May 2018: Vhi Group today published its annual report and accounts for the year end 31 December 2017, the year in which Vhi celebrated 60 years in business. Vhi reported a net surplus of €75.3 million and paid claims amounting to €1.329 billion. For the third year in a row membership numbers grew, leading to an increase in Private Medical Insurance (PMI) membership of 1.075 million, up from 1.069 million at year end 31 Dec 2016.
Commenting on the results, John O’Dwyer, CEO Vhi Group said: “The business continues to perform well, a consequence of a strong underlying membership performance and an unrelenting focus on cost and financial management. This consistent strong financial performance allows us to continue to reinvest our profits back into the business directly for the benefit of our customers. Vhi exists solely to meet the healthcare needs of our customers and over the past year we have been doing this by enhancing the benefits available on our plans while also reducing our prices. In the past year there has also been a significant reduction in claims from our customers in public hospitals, many of whom are now choosing to be treated as public patients when receiving care in a public hospital. This too is helping to bring down the cost of health insurance for all.”
Vhi today also announced a further price reduction on the majority of its plans by an average of 2% which will be effective on July 1st 2018. For most of our customers this will be the second or third price reduction in the last 12 months following price reductions announced in November 2017 and March 2018. Today, we are pleased to announce that all these price reductions will be available to our customers from July 1st 2018. This means that the majority of our customers will benefit immediately from the cumulative impact of the price reductions rather than having to wait for their renewal date.”
The key financial results for Vhi Group for the year end 31 December 2017 were as follows:
- After tax results to 31 December 2017 showed a net surplus of €75.3 million for Vhi’s consolidated business activities compared with €56.4 million in 2016.
- Gross earned premium for 2017 came to €1.480 billion, favourable compared with €1.430 billion in the previous year. PMI membership grew to 1.075m (2016: 1.069m) and income from insurance products and services other than private health insurance amounted to €27.8 million during the year.
- At the end of December 2017, Vhi had reserves of €610.9 million representing an increase of €52.7 million or 9.4% compared with the previous year’s position.
- Total gross claims paid in 2017 totalled €1.329 billion, down 1.7% compared with €1.353 billion in 2016.
- Vhi’s operating expense ratio to premium income was 7.9% in 2017, broadly in line with the previous year.
In a significant strategic development in 2017, Vhi Group took full ownership of the Vhi SwiftCare Clinics during the year and made these services available to Vhi customers only. We also expanded the Vhi Hospital @Home Service and Vhi Screening services to Galway providing Vhi customers in the West of Ireland with these services for the first time, supporting our strategy of offering enhanced services across a greater geographic footprint.
During 2017 and again in early 2018 Vhi announced new product and benefit enhancements including: improved outpatient and primary care benefits, reductions in excesses, enhanced Cancer Care, Cardiac Care, Maternity Care, a new Genetic Testing benefit , Online GP, Fitness and Screening and Strength and Conditioning benefits across a range of its plans.
Commenting on the PMI market generally, Mr John O Dwyer said: “Our business has performed well over the last number of years. However, the Irish healthcare market has challenges ahead and the most recent ESRI report on health forecasts that demand for healthcare is projected to increase substantially to 2030 and confirms that the population is ageing significantly - we need to plan for this accordingly.”
Brighid Smyth / Niamh Walker
Vhi Group Services DAC
Ph: 01 6147348 / 01 887 1825
M: 086 8270905 / 086 608 6764