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Medihelp rated AA- by Global Credit Rating

25 September 2008 Medihelp

Medihelp’s domestic ZAR currency claims paying ability rating has recently been upgraded to AA- by the internationally renowned Global Credit Rating Company (GCR).

This comes after Medihelp has been given an A+ rating from GCR for ten consecutive years prior to this year’s rating.

According to GCR’s report Medihelp’s 2008 rating revolves around six key points:

  • The Scheme has one of the largest risk pools in the open schemes industry.
  • The substantial net surpluses posted by Medihelp over the review period have supported consistent increases in the level of its reserves to total a high of R908m at the end of the 2007 financial year.
  • The noticeable strengthening in the Scheme’s statutory solvency, which comfortably exceeded the minimum regulatory requirement of 25%. Solvency is expected to be maintained at this level throughout 2008.
  • Medihelp’s low delivery cost ratio relative to industry norms.
  • The Scheme’s large and liquid investment portfolio, supporting comfortable liquidity levels.
  • The Scheme’s well-managed risk of the high average age of its principal members.

According to Anton Rijnen (pictured), Executive Principal Officer of Medihelp, the Scheme has performed exceptionally well in 2007. “We ended the financial year with a net surplus of R178.2 million, a solvency level of 29.9% and a per capita premium increase of only 9.2% on average for its 2008 product range. In fact, our solvency ratio increased to just over 30% in 2008,” says Rijnen.

“Besides our good financial results we were able to perform well in a number of other areas. Our marketing and brand awareness initiatives yielded a net increase of private individuals in 2007 helping us to maintain our position has third largest open scheme in the country. Our delivery cost is still among the lowest in the industry at just over 10% and according to the Ask Afrika Orange Index Medihelp is yet again the best medical scheme in the industry when in comes to client service,” says Rijnen.

According to him Medihelp was also able to accommodate the group of State pensioners who retired prior to 1 July 1992 and formed part of its risk pool since July 2005, successfully. “It required various interventions, dedicated management and lots of time and energy to minimise the influence of these members on our net results, solvency level and subscription increases. The success of these efforts is reflected in Medihelp’s good financial and other results,” says Rijnen.

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