Vhi Group reveals rise in net surplus in 2016
Vhi Group have announced a net surplus of €56.4m in its financial results for the year ending December 31, 2016.
The group alse recorded an improved reserves position of €558.2m, a 7% increase on 2015.
They say the improved results were driven by an increase in membership for the second consecutive year to 1.069 million health insurance customers as well as cost management measures.
John O’Dwyer, Chief Executive of Vhi Group, said: “I am pleased to report that 2016 was another successful year for Vhi Group. We grew our private health insurance membership and continued the growth of our diversified insurance and health care services offerings resulting in the delivery of another strong financial performance.
"These results were achieved despite the difficult dynamics of an ageing population, medical inflation and the persistence of low investment returns.”
The group's key financial results for 2016 are:
- After tax results showed a net surplus of €56.4m for Vhi’s consolidated business activities compared with €45.5m in 2015.
- Gross earned premium for 2016 totalled €1.430bn, slightly favourable compared with €1.428bn in the previous year.
- At the end of December 2016, Vhi had free reserves of €558.2m, representing an increase of €36.6m or 7% compared with the previous year’s position. This further strengthens Vhi’s regulatory capital position, which is well in excess of minimum levels required under EU Solvency II regulations.
- Total gross claims paid in 2016 amounted to €1.34bn, down slightly compared with €1.38bn in 2015. The reduction in claims paid is influenced by the timing of payments made to providers, in particular public hospitals.
- Operating expense ratio to premium income was 8.3% in 2016, remaining broadly in line with 2015. This represents a significant achievement given the range of demands on the business as Vhi invests to implement change in an evolving business and regulatory environment.
