VHI records €54.3 million profit for 2012
State-owned insurer loses over €7 million on core health insurance business
VHI Healthcare recorded an after-tax surplus of € 54.3 million last year, according to its annual report and accounts published today. Image: Google Streetview
VHI Healthcare recorded an after-tax surplus of € 54.3 million last year, according to its annual report and accounts published today.
This includes a once-off credit of €38.2 million related to the end of retirement benefits for staff, giving a remaining surplus of € 16.1 million for the year.
The State-owned insurer recorded a €7.2 million loss on its core health insurance business. This was offset by profits made in its dental, travel and international business.
Total premium income was up 9 per cent to €1.43 billion, as rising individual premiums more than made up for a 50,000 fall in customer numbers.
Chief executive John O’Dwyer said 2012 was a challenging year for the company, which 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 ageing profile of our customer base and the lack of an effective risk equalisation scheme.”
Total claims, at €1.4 billion, were up almost 9 per cent due to a significant rise in the number of procedures carried out, more claims incurred and the ageing of the VHI’s book