Accounts lodged by Laya Healthcare Ltd — formerly Quinn Healthcare Ltd — show that the firm recorded a pre-tax profit of €4.99m last year, following a €2m loss in 2011, a positive swing of €6.9m.
The turnaround in the Cork-based firm’s fortunes was on the back of increased revenues with income up 44% from €23.4m to €33.75m as members increased by 5.5% from 450,000 to 475,000 since launch.
The firm was the subject of a management buyout in Dec 2011 with the support of an underwriter owned by Swiss Re.
The business rebranded in May 2012 as Laya Healthcare.
Laya Healthcare managing director Donal Clancy said yesterday: “As a business, there is a lot to be positive about. That we have significantly grown our members to over 475,000 to date, in a market that is haemorrhaging approximately 5,500 a month, is testament to the hard work of our team and, moreover, our obsession with maintaining affordable quality healthcare for our members. We are growing in a declining market.
“We are still on track to deliver 100 new jobs as promised when we launched.”
Mr Clancy said the return to profit last year was driven by increased turnover, increase in market share and management initiatives during the year.
“We are operating in what is widely regarded as the toughest market for health insurance in decades,” said Mr Clancy. “However, we are very well positioned for continued growth.
“As a business, however, we have come under unprecedented pressure by Government to absorb a series of major price increases, including the increase to the health levy, cuts to tax relief, and the planned public beds redesignation charge.
“These changes have the potential to seriously destabilise the private medical insurance market, and create a cost spiral that simply must be addressed.
“For this reason, we will continue to review our costs and premiums to keep healthcare as affordable as possible for our members.”
The figures show that Laya Healthcare recorded an operating profit of €4.5m in 2012 following an operating loss of €2.5m in 2011.
The accounts show that the firm enjoyed exceptional income of €315,581 in 2012 and interest income of €224,719.
The figures show the firm recorded an actuarial loss of €8.5m resulting in a shareholders’ deficit of €2.56m.
The profit takes account of non-cash depreciation costs of €1.22m.