Bonitas rating on positive outlook

International rating agency, Global Credit Rating Company (“GCR”), has reaffirmed Bonitas Medical Fund’s (“Bonitas”) domestic ZAR currency claims paying ability rating of AA- (double A minus). In addition, the rating was maintained on positive outlook.

Bonitas has successfully grown its membership base over the past two years, reinforcing its position as the second largest open medical schemes in terms of the size of its risk pool. Susan Andrews, analyst at GCR, noted the substantial net surpluses posted over the review period, which have underpinned consistent growth in the level of reserves to total R2.3bn at the end of F07. Accordingly, Bonitas has maintained strong and stable solvency levels that continue to compare favourably with industry averages. The statutory funding ratio of 48% (F06: 49%) was comfortably above the minimum regulatory requirement. Other key credit protection measures remained sound, with reserves per principal member increasing to R9,450 from R8,943 in F06, while accumulated funds covered average monthly claims an unchanged 6.7x. The scheme’s large and liquid investment portfolio has supported comfortable liquidity levels.

Bonitas remains exposed to the loss of state employed members to GEMS and the associated change in the claiming profile of members. Cognisance is, however, taken of the strong growth in the private sector component of membership, which now constitutes the majority of the membership base.