Vhi reports a solid performance allowing it invest in the business for the benefit of its customers

Highlights

  • After tax results to 31 December 2018 showed a net surplus of €82.4 million for Vhi’s consolidated business activities compared with €75.3m in 2017.
  • Gross earned premium for 2018 came to €1.414 billion compared with €1.480 billion in 2017.
  • Income from insurance products and services other than private health insurance amounted to €31.2 million during the year up from €27.8m in 2017.   
  • PMI membership grew to 1.106 million (2017: 1.075 million).
  • Vhi had free reserves of €676 million representing an increase of €65.1 million or 10.6% increase compared with the previous year’s position.  
  • Total gross claims paid in 2018 totalled €1.328 billion, down 0.1% compared with €1.329 billion in 2017. 

17th April 2019 - Vhi today announced details of its annual results for the year ending 31 December 2018.  This has been another solid year for Vhi Group with the consolidated business reporting a net surplus of €82.4 million. The business has delivered across all key performance indicators and is strongly capitalised. For the fourth year in a row, private medical insurance membership grew. Membership numbers for year end 2018 were 1.106 million up from 1.075 million in 2017. Vhi also grew its multi-line business with a membership of 421K compared to 397K (2017) representing a 6% year on year growth. The business has continued to focus on delivering healthcare solutions that customers need and have asked for, while at the same time managing costs and delivering efficiencies.

In 2018 Vhi paid €1.328 billion in meeting the healthcare needs of our customers and processed almost 1,206,000 claims. The most significant areas of claims expenditure were cancer & related care (€174.3m), heart & circulatory system (€159.5m), orthopaedic care (€153.8m), digestive system (€105.3m) & respiratory illness (€72.6m).

Commenting on the results, John O’Dwyer, Chief Executive said: “At Vhi our number one priority is looking after the healthcare needs of our customers. During the year we experienced a reduction in claims for public hospitals resulting in savings which we immediately passed to our customers through price reductions and improved product benefits. In 2018, we also invested in new medical benefits; additional dedicated services such as a new paediatric consultant led service, expanded the Vhi Hospital @Home service and enhanced the Vhi Swiftcare Clinic in Dundrum. We also improved our digital capability, making it easier for our customers to engage with us online. In addition we increased our customers’ access to the latest technologies available by partnering with a number of innovative providers to bring a range of telehealth benefits and services directly to customers such as Online Doctor, Nurseline, preventative health checks and innovative apps such as Beats Medical which has an app to support children with dyspraxia.”

He continued “In 2018 we approved drugs, procedures and technologies making sure that our customers continue to have access to the latest innovative treatments, medicines and technologies available. Last year we also approved new benefits covering genetic testing for hereditary cancer and molecular profiling for malignant tumours.”

Vhi is committed to ongoing cost containment and we work to ensure that procedures are being carried out in the most effective setting, working with providers to reduce length of stay and to ensure that care is delivered to the highest standards and in the most clinically appropriate setting. The Special Investigation Unit (SIU) at Vhi has since its establishment in 2009 recovered almost €151.6 million in inappropriate billing. Last year alone savings made by the SIU amounted to €24.8 million. These savings are returned to the customer through enhanced product benefits.

In conclusion, John O’ Dwyer said “The Irish economy has recovered well and as a consequence the Private Health Insurance Market continues to expand. However, in order to protect Community Rating, the system of health insurance in Ireland where everyone pays the same price for the same product regardless of their age or health status, more needs to be done. We need to improve the Risk Equalisation System so that health insurers are rewarded for delivering efficiencies and providing better health outcomes rather than just selecting better risks. Now is the time to take those steps.”

He added “health systems around the world are experiencing growing demand for more and better healthcare – the underlying cost drivers are rising. Ireland is no exception, our population is ageing and people are living longer with chronic diseases. The Government and the Oireachtas has responded to Ireland’s healthcare challenges with Sláintecare, a new vision for the future of healthcare in Ireland which involves significant investment in developing new primary and acute care capacity, integrated care and chronic disease management programmes. As these plans take shape Vhi continues to adapt and plan for the future and we want to play a key role in the evolution and development of future healthcare policy for the benefit of all.”

ENDS

 

                                  

Vhi_Press

17-Apr-2019