Pro Sano accorded A+ credit rating

(Despite Pro Sano having been placed under curatorship over its governance, GCR has accorded the Medical scheme an A+ claims paying ability rating.)

International rating agency, Global Credit Ratings ("GCR"), has accorded Pro Sano Medical Scheme a domestic ZAR currency claims paying ability rating of A+ (single A plus). The rating denotes a high claims paying ability, with good protection factors. This was despite the fact that Pro Sano was placed under curatorship at the end of April 2007 after an investigation into the governance of the scheme.

According to Marc Joffe, Head of Healthcare at GCR, the scheme encountered a difficult year in 2006, under the previous management of the scheme, which saw an increase in the ratios of claims incurred and delivery costs to levels well above historical norms. This impacted negatively on Pro Sanos reserves, while solvency ratios decreased. These do, however, remain relatively strong and the statutory funding ratio (at 39%) remained well above the Medical Schemes Acts minimum requirement of 25%. In addition, the scheme displays a fairly large investment portfolio with healthy levels of liquidity.

While a further operating deficit is budgeted for 2007, Joffe stated that the corrective action being implemented by the schemes curator, to ensure the long term sustainability of Pro Sano, was positively considered.

Joffe noted that Pro Sano reflected a further loss in membership, which together with the large government concentration exposes the scheme to a further potential decrease. However, management is aware of this challenge and is refocusing its efforts towards growing private membership.