The VHI is in the black. Its accounts to the end of last December show an after tax surplus of €54.3 million. However the figures are for the VHI consolidated business and include a once-off credit of €38.2 million relating to curtailed retirement benefits.
The health insurance element of the VHI was loss making again with a loss of €7.2 million recorded in the year to the end of December 31st last.
Excluding this one-off item, the surplus would have been approximately €16 million.
Commenting on the results Vhi Healthcare CEO John O'Dwyer said "While we delivered a surplus, the core health insurance business continues to be loss making. This is due to the aging profile of our customer base and the lack of an effective risk equalisation scheme".
Some key financial results for 2012 include:
- Earned premium for 2012 came to €1.431 billion, up almost 9% on premium income earned of €1.314 billion in 2011
- Total claims incurred during 2012 amounted to €1.396 billion. This figure is up 13% on the previous year due to a number of factors including a significant increase in the number of medical procedures being provided and more claims incurred
- A claims ratio of 92.9% (versus 90.8% the previous year) means that of every €100 received in premium income almost €93 is spent on the medical care needs of customers
- VHI Healthcare’s operating expense ratio to premium income for its health insurance business in 2012 came to just 6.2%
- VHI Healthcare’s reserves increased to almost €324 million in 2012 (or 21.5%), up by nearly €30 million on 2011
- The investment return for 2012 was €19.4 million, a substantial improvement on the loss of €23.5 million in 2011
The healthcare arm has a 56% market share and a 90% share of the over-80s, 80% of the over-70s and 67% of the over-60s.
The firm says that between 2009 and 2012, the number of customers in these age brackets has steadily increased.
