Vhi Group today announced its financial results for the year ending 31st December 2016, recording a net surplus of €56.4 million and an improved reserves position of €558.2 million, a 7% increase on 2015.
Gross earned premium for 2016 totalled €1.430 billion, slightly favourable compared with €1.428 billion in the previous year.
At the end of December 2016, Vhi had free reserves of €558.2 million, representing an increase of €36.6 million 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.
The figures show total gross claims paid in 2016 amounted to €1.34 billion, down slightly compared with €1.38 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.
Commenting on the financial results, Chief Executive at Vhi Group, John O’Dwyer 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."