Vhi Group reports financial performance for 2019
Membership grew for 5th year in a row
Expanding access to a wide range of Vhi owned and managed health and wellbeing services for customers.
Supporting our customers through COVID 19 in 2020 and beyond.
August 12 , 2020, Vhi today announced its annual results for the year end 31st December 2019. The Group’s consolidated business operations, including private medical insurance, other insurance services and proprietary healthcare services, reported a net surplus of €45.1 million in 2019 and Vhi had free reserves of €701.2 million. Vhi is strongly capitalised and continues to perform well.
The private medical insurance membership grew for the fifth year in a row to reach 1,128,000 customers. Strong growth in membership was also achieved in the other insurance services with 443,000 people selecting Vhi as their partner of choice for dental protection, travel cover and life insurance .The strength of the Vhi brand and its track record of delivery offers re-assurance to customers when choosing their insurance and healthcare partner.
Vhi noted that 2019 saw a material increase in the cost of delivering healthcare. The value of claims paid during the year amounted to €1.387 billion, an increase of 4.4% on 2018. Key factors driving the rise in costs included: an aging population, the ongoing adoption and availability of more high-cost complex surgical procedures, the provision of high-cost drugs for customers, the increasing volume of medical claims in private hospitals and overall inflation in medical costs. The increase in private hospital costs was mitigated to a limited extent by a reduction in public hospital costs.
Primary care claims experienced significant growth on the back of enhanced primary care benefits and increased uptake of Vhi’s digital outpatient Snap and Send service which makes it easier for customers to submit their claims through MyVhi and the Vhi app. In all, 85% of outpatient claims were submitted in this way in 2019 compared to 76% in 2018. The volume of claims processed for primary care in 2019 was approximately 625K compared to 408K in 2018 representing an increase of 53%.
Key Financial Results
- After tax results to 31 December 2019 showed a net surplus of €45.1 million for Vhi’s consolidated business activitie
- Income from insurance products and services other than private health insurance amounted to €34.5 million during the year, up from €31.2 million in 2018
- Gross earned premium for private health insurance in 2019 came to €1.413 billion compared with €1.414 billion in 2018
- Private Health Insurance membership grew in 2019 to 1,128,000, up from 1,106,000 in 2018
- At the end of December 2019, Vhi had free reserves of €701.2 million compared to the previous year’s €676 million
- Total claims paid in 2019 amounted to €1,387 billion, an increase of 4.4% on 2018.
Commenting on the year-end results John O’Dwyer, Chief Executive said “2019 was a year in which there was continued growth in membership and a positive overall performance across all key activities. There was a strong response from customers to new benefits and services and this is reflected in positive results across all key activities. Significant progress was made in executing our strategic intent to move the business beyond health insurance towards a broader concept of superior healthcare provision, with a unique range of Vhi-owned and managed clinical services helping our customer’s lead longer, stronger and healthier lives. Access to additional clinical services such as Hospital@Home, Vhi SwiftCare Clinics, Vhi Paediatric Clinics as well as screening and other services is really resonating well with our customers.
He continued: “I am very conscious that these results are being published against the backdrop of the unprecedented health and economic crisis presented by COVID-19, the biggest health and economic crisis to impact Ireland – and the world – in decades. We are acutely aware of the uncertain situation that the country and our customers are facing right now. The health and wellbeing of our customers, our staff, the healthcare workers and the population as a whole are at the forefront of our minds. Vhi remains committed to do all that we can to support the national effort to address this healthcare crisis.”
Vhi, an organisation with a 63 year legacy of helping to meet its customers’ healthcare needs, continues to play its part in responding to the national crisis and already we announced a series of supports for our customers. These included an average 50% waiver on premium for the duration of the private hospital agreement, enhancements to existing benefits and the introduction of new telehealth benefits as well as the introduction of hardship measures for those financially impacted by COVID 19.
He concluded: “2020 and 2021 are likely to be challenging years. However, Vhi will strive to continue to lead the way in the provision of affordable health insurance and providing access to superior health and wellbeing services for our customers into the future. We will continue to champion innovation in the marketplace, while always putting our customer first in everything we do.
ENDS
Issued By
Brighid Smyth
Head of Corporate Communications
Phone : 0868270905
Vhi_Press
12-Aug-2020