Vhi have announced a surplus after tax of €65 million for 2013.

The health insurer says it represent a margin of 4.4% improvement on the previous year's surplus of €54 million.

They have attributed the results, in part, to a new four-year reinsurance agreement with Berkshire Hathaway. The company says that has allowed them to make an application for authorisation by the Central Bank of Ireland.

Commenting on the financial results John O’Dwyer, CEO, Vhi Healthcare, said: "Vhi Healthcare continued to perform well in a challenging market in 2013.  We recorded a strong surplus on our consolidated business, improved our solvency position and maintained a low operating cost ratio. The improved financial results have been achieved on the back of a number of key initiatives taken in 2012 and 2013 which will continue to bear fruit in future years.  These initiatives focused primarily on claims cost management and the cost of claims has reduced by 2.1% in the year. The business also purchased reinsurance for the first time in order to improve its solvency position."

"The Central Bank will ultimately determine what solvency levels are required. However, it is our view that because of our improved financial performance and the longer term reinsurance agreement that is now in place with Berkshire Hathaway that we can achieve the solvency levels required without recourse to Government" O'Dwyer concluded.

Vhi hiked many of its plans in January of this year, with other providers following their lead.

At the end of 2013, Vhi Healthcare had free cash reserves of over €389 million, bringing the company’s solvency level to 156% compared to 108% in 2012 and 100% in 2011.