Liberty Medical Scheme gets an AA- rating upgrade

Following on from a merger with Medicover earlier this year Liberty Medical Scheme has been upgraded from A+ to AA- by independent rating company Global Credit Rating.

According to the Global Credit Rating report the merger has enhanced the longer term competitiveness and sustainability of the new consolidated scheme, augmenting its level of financial reserves, scale efficiencies, degree of bargaining power with suppliers and membership diversity.

Liberty Medical Scheme’s Executive Principal Officer, Andrew Edwards says this upgraded rating is proof that Liberty Medical Scheme’s growth has amplified as a result of the merger.

Edwards says, ”In our currently challenging economic climate this independent analysis underlines the fact that we have a strong, sustainable and financially liquid long term business as a result of our customer-centric business model, extensive distribution network and solid brand. Our strong solvency means we can offer financial security, peace of mind and a solid claims paying ability to all our members. The company is committed to rolling out cost effective medical cover to the local mass market.”

“Many medical cover providers are raising their prices or cutting package benefits. At Liberty Medical Scheme we are putting our money where are mouths are and increased our benefit limits by eight percent and our Medical Savings Facility benefits by an average of ten percent.”, he said.

According to Global Credit Rating spokesperson Sheri Few, other reasons for the upgrade included the efficient bedding down of the merged entity; the company’s favourable year to date performance and the resultant strong solvency and key credit protection measures. Moreover, the scheme’s future potential strategic mergers were also favourably considered and the independent company felt it appropriate to award Liberty Medical Scheme the credit upgrade.

Global Credit Rating also concluded that the rating upgrade is certainly positive in light of the fact that only a few medical schemes have been accorded a rating within the AA rating band. As a result the merged entity appears successful, considering that the scheme reported a R17m net surplus as at April 2010.