Liberty Health maintains strong rating of A+

International rating agency, Global Credit Rating Company (“GCR”), has reaffirmed the domestic ZAR currency claims paying ability rating of A+ (single A plus) accorded to Liberty Health Medical Scheme (“Liberty”). The rating is a reflection of a high claims paying ability and above average protection factors.

Liberty’s relationship with the Liberty Group provides it with a competitive advantage in terms of its access to the Liberty Life tied agency force and client database, as well as the potential for product bundling and cross selling opportunities. Against this background, the scheme has achieved consistent and stable membership growth over the past three years, with the number of principal members having increased by 4% in F07 to end the year at 46,485. According to Susan Andrews of GCR, cognisance was taken of the scheme’s strong brand and access to the Liberty group’s extensive distribution infrastructure. In this regard, Liberty recently took the decision to transfer the full administrative and managed care function to the Liberty group’s healthcare administrator, with the transfer expected to take place as early as 4Q F08. This is expected to reinforce the brand linkage to the Liberty group and demonstrates the group’s commitment to the South African healthcare industry.

The effectiveness of product differentiation and re-pricing was reflected by a significant improvement in operating performance in F07, with the net result reverting to a surplus from a large deficit position in F06. Furthermore, note was taken of the marked increase in solvency anticipated in F08. Liberty has maintained a large and diversified investment portfolio and displayed strengthened liquidity measures in F07.