Profmed accorded initial rating of A+, placed on positive outlook

International rating agency, Global Credit Ratings ("GCR") has accorded Profmed an initial claims paying ability rating of A+ (single A plus). The rating denotes a high claims paying ability, with good protection factors. Furthermore, given the positive initiatives being undertaken by the scheme, the rating has been placed on a positive outlook.

According to Marc Joffe, Head of Healthcare at GCR, the rating was supported by the large net surpluses recorded by the scheme in each of the last three years, which have significantly bolstered the scheme's members' surplus and seen a rapid increase in solvency levels. In this regard, the statutory funding ratio was posted at a high of 52% (2005: 39%), well above the Acts minimum requirement of 25%. Furthermore, Profmed exhibits a large liquid investment portfolio, and displays strong levels of cash coverage.

Joffe also noted that Profmed has evidenced a gradual decrease in membership since 2003, which has continued for the year to date. Initiatives aimed at addressing this are, however, positively viewed, and are also expected to favourably impact the age profile of the scheme in the medium to longer term.