| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Jun 27, 2013 - 6:47 AM


VHI reports 2012 surplus of €54.3m; Health insurance made loss
By Finfacts Team
Jun 26, 2013 - 4:40 PM

Email this article
 Printer friendly page

Vhi Healthcare today announced a surplus after tax of €54.3m for its consolidated business has been recorded. This includes a once-off credit of €38.2m relating to the write-back of curtailed retirement benefits.  Excluding this one-off item, the surplus would have been approximately €16.1m. The private health insurance element of Vhi Healthcare’s business was loss making with an underwriting loss of €7.2m recorded.

Earned premium of €1.43bn was recorded in 2012 (an increase of almost 9% on 2011) against claims incurred of €1.39bn, an increase of 13%.  This was balanced by a strong performance by the diversified businesses, a substantially improved investment return and an improved operating expenses ratio of 6.2%.

 John O’Dwyer, CEO, Vhi Healthcare, said: “2012 was a challenging year for Vhi Healthcare, however the company delivered a steady performance in a declining market.  Our focus on cost containment delivered savings of over €100 million in 2012 and our investment performance was strong, marginally improving our financial position. 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.”

He added: "“Securing authorisation by Central Bank of Ireland (CBI) is our priority for the year ahead. We have made good progress in relation to internal readiness to meet governance and compliance requirements. While the surplus recorded this year is very welcome, we will need to build on this in the coming year as ultimately we will need to record a surplus of at least €60m each year if we are to maintain the correct solvency level required for authorisation."

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.

Key Stats

  • Vhi Healthcare has a 56% market share yet pays approximately 75% of the claims .
  • Vhi Healthcare has a 90% share of the over 80s , 80% of the over 70s and 67% of the over 60s.
  • In the last 8 years Vhi Healthcare has experienced a  29% reduction in its customers under age 60 while at the same time it has seen a 12% increase in its customers over age 60. 

Between 2009 and 2012

  • The number of Vhi customers  over 80 has increased by 33%.
  • The number of Vhi customers over 70 has increased by 25%.
  • The number of Vhi customers over 60 has increased by 15%.

The annual report is not yet online.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%