The Profmed Integrated Report 2010 shows healthy growth in membership and reserves in the medical scheme for graduate professionals.
Profmed, the largest restricted medical scheme in South Africa for graduate professionals, released its Integrated Report 2010 in May this year, one of the first of its kind in the medical scheme industry. An integrated report contains an organisation’s annual financial reports as well as any sustainability information, so that stakeholders can refer to a single document to understand how a company operates in its communities and what impact it has on the environment.
In South Africa, the King III Code on Governance recommends that organisations produce an integrated report, and this is now a JSE listing requirement. The Profmed Board of Trustees unanimously adopted the principles of the King Report on Governance, and conducted a gap analysis to determine which of Profmed’s existing governance practices needed to be updated to become compliant.
“We are proud to inform our members that this gap analysis revealed that Profmed is well advanced in its governance policies and procedures and that very little work would need to be done to be fully compliant with King III,” says Esmé Prins-Van den Berg, chairman of the Profmed Board of Trustees.
She believes that Profmed’s commitment to the integrity of good governance has underpinned the success of Profmed. The figures bear this out. In the financial year ending 31 December 2010:
· Profmed’s members’ funds and reserves increased by 24.36% to R396 million
· Scheme reserves increased to 47.1% (2009: 45.10%)
· The scheme’s investments saw a return of 18.3% (2009: 13.77%)
· Administration expenses decreased to 10.14% of contribution income (2009: 10.35%)
· New membership growth continues, and the scheme finished the year with just under 26 000 principal members.
“These figures are a sign of a healthy medical scheme that is more than able to cater to the needs of its members,” says Graham Anderson, Profmed principal officer. “In difficult financial times, we have continued to grow our members and our reserves, and provide meaningful financial support when it is most needed.”
Profmed’s vision is to address the healthcare needs of professionals through appropriate benefits. In light of this, the medical scheme views its corporate sustainability as the creation and protection of value for all stakeholders through effectively managing financial and non-financial factors impacting the scheme’s economic performance.
“We believe that this report and the figures contained in it underpin our vision and the value that we provide to our members,” says Anderson.
The full Profmed Integrated Report can be viewed at http://www.profmed.co.za/.
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