Membership grows for the seventh year in a row

 

Vhi returns €450m in value to customers in recognition of the drop in claims due to the ongoing pandemic

 

7th April 2022 - Vhi today announced details of its annual results for the year ending 31 December 2021. Despite the ongoing challenging environment created by the pandemic, Vhi achieved a solid financial performance with an increase in revenue, and growth in membership for the seventh year in a row. 

In 2021, Vhi achieved a net surplus of €65.3 million from consolidated business activities. This represents an increase on last year when the net surplus was €52.7 million and was largely driven by strong membership performance. The gross earned premium for private health insurance in 2021 came to €1.589 billion. This was also up on 2020 when it came in at €1.506 billion. In addition, Private Health Insurance membership grew this year, totaling 1,154,100, in comparison to 1,131,900 in 2020. Total claims paid in 2021 amounted to €1.295 billion, compared to €1.147 billion in 2020, an increase of 13 per cent. Income from insurance products and services other than private health insurance amounted to €26.2 million during the year, which was down marginally from €28.6 million in 2020, nevertheless a robust result in the context of the second year of the pandemic. At the end of December 2021, Vhi had free reserves of €859 million, compared to the previous year’s €773 million.

As the only health insurer that exists solely to meet the healthcare needs of its customers, the reduction in claims informed Vhi’s decision to waive premium for its customers on three occasions in 2020, 2021 and 2022 returning a total of €450m in value to our customers.

Vhi continued to provide customers with access to superior and affordable health and wellbeing services that meet their healthcare needs at various life stages.  In 2021, there was strong growth in the number of Vhi customers and patients who directly accessed Vhi’s growing healthcare supports with over 380,000 healthcare interactions, up by about 28% from last year. In addition, the Vhi 360 Health Centre in Limerick successfully completed its first full year in operation and in December 2021, Vhi announced the opening of a new flagship 5,000 square metre Vhi 360 Health Centre in Carrickmines, Dublin.

Key financial results for the year ending 31 December 2021 included:

• Gross earned premium for private health insurance in 2021 came to €1.589 billion. This was up on 2020 when it came in at €1.506 billion.
• Private Health Insurance membership grew this year, totalling 1,154,100, in comparison to 1,131,900 in 2020.
• After tax results to 31 December 2021 showed a net surplus of €65.3 million from consolidated business activities. This is an increase on 2020 when the net surplus was €52.7 million.
• Total claims paid in 2021 amounted to €1.295 billion, compared to €1.147 billion in 2020, an increase of 13 per cent.
• Income from insurance products and services other than private health insurance amounted to €26.2 million during the year.
• At the end of December 2021, Vhi had free reserves of €859 million, compared to the previous year’s €773 million.

Commenting on the annual results for the year end 31 December 2021, Mr Declan Moran, Vhi Group CEO said “The COVID-19 pandemic continued to impact the healthcare environment throughout 2021, restricting access to many healthcare facilities and services across the country. Despite this impact on access, demand for Vhi private health insurance remained strong, supported by innovative health and wellbeing benefits including new and enhanced digital benefits and mental health supports. Wellness programmes were received really well with strong participation from corporate employees. As part of our response to Covid, Vhi introduced supports for customers experiencing financial hardship as a result of the pandemic.”   

“As demand for, and utilisation of, digital technologies continues to grow, including online GP consultations and mindfulness and meditation apps, we have continued to adapt our technologies to improve the online experience for our customers. We delivered over 46,000 GP online consultations and 90% of our customers are using “Snap and Send” to submit their primary care claims through the Vhi App.”

Commenting on the market generally Declan Moran said: “Community  Rating is an important feature of the private health insurance market that ensures older and sicker customers can continue to purchase affordable health cover irrespective of their age, health status or past claims. Risk Equalisation is an essential factor in helping realise this goal. The Risk Equalisation scheme has steadily improved over time and Vhi welcomes the expansion in health credits through the introduction of a high-cost claimant’s pool. This will help underpin Community Rating.”

Concluding, Declan Moran said: “I want to thank our customers for choosing Vhi. We are committed to supporting our customer’s live longer, stronger, healthier lives and continuing to play an important role in Ireland’s healthcare as the country continues to mitigate the ongoing public healthcare challenge presented by COVID-19. On that note, I would like to thank all my colleagues for their hard work and dedication in the past year and especially to my colleagues on the frontline who continued to deliver the best patient care in very uncertain times.”

ENDS

 

Issued by:

Brighid Smyth / Sile Murphy

Vhi Group Services DAC

Ph: 086 827 0905 / 086 0288 132

Brighid.smyth@vhi.ie / sile.murphy@vhi.ie

 

Vhi_Press

07-Apr-2022