Medshield given thumbs up by international ratings authority

Medshield, one of South Africa's largest medical schemes has received a glowing report from the international ratings agency, Global Credit Ratings (GCR). The scheme has again been acknowledged for its claims paying ability, scoring an AA- rating for the second consecutive year. This is the second highest rating a medical scheme can achieve more positive news for all Medshield stakeholders.

Marc Joffe, GCR Vice President, highlighted Medshield's creditable position, noting the scheme's substantial net surpluses (posted throughout the review period) as significantly bolstering its reserve levels. Medshield has achieved consistent increases in solvency over the past five years and currently displays one of the highest solvency margins in the industry, at 65%. The Medical Schemes Act stipulates a minimum solvency ratio of 25%. Another highlight noted by Joffe is the impressive 10% increase in principal members, taking the scheme's membership to 76, 637.

Medshield Chairman, Peter Moyanga, responds, "The Board is naturally delighted to be able to report these favourable findings to all Medshield stakeholders. Against the backdrop of a characteristically volatile industry, the scheme has worked hard to maintain a large and well diversified investment portfolio, while always ensuring a true value offering to members."

He continues, "Medshield's conservative rate increases and the scheme's crucial benefit restructuring have both played a vital role in our commitment to providing uncomplicated and affordable scheme options that meet each member's every need. It is this uncompromising standard that has and will continue to ensure Medshields longevity. The 10% increase in membership reflects this strength." 

In terms of future prospects, the GCR report states that in anticipation of the loss of some government members to GEMS, Medshield has embarked on an aggressive marketing campaign to rapidly grow membership sourced from the private sector. As a result, despite the loss of government members, the scheme has reverted to positive net growth.