Laya profits increase 5% to €5.25m

Pre-tax profits at the country’s second largest health insurer, Laya Healthcare, last year increased by 5% to €5.25m.

New figures filed with the Companies Office show that Laya Healthcare Ltd — formerly Quinn Healthcare Ltd — last year enjoyed the profit increase after revenues went up by 16.5%, from €33.75m to €39.33m.

The firm — which now has almost 500,000 subscribers — was the subject of a management buy-out in December 2011 with the support of an underwriter owned by reinsurance company Swiss Re. The business rebranded in May 2012 to become Laya Healthcare.

Numbers employed by the firm last year increased from 348 to 405, with staff costs increasing from €15.1m to €20.2m.

During the same period, pay for the firm’s seven directors nearly doubled, going from €785,000 to €1.36m; this was made up of €1.1m in emoluments, €120,779 in pension costs, and €105,000 in director fees.

Laya recently opened an office in Dublin and the numbers employed by the firm now stand at 480.

The revenues generated by the firm arise from the commission it generates from its insurance-related services.

The firm enjoyed the increased profits and revenues last year after it increased its market share to 22.8% at the expense of VHI Healthcare and Aviva Health, which both lost market share last year

Laya Healthcare managing director Dónal Clancy said yesterday: “We are very pleased to report a second year of profitability and growth in our business which has led to an increase in turnover. Our focus is firmly on continuing to grow the business and as part of our business strategy, we have now entered into the life insurance market with the recent launch of Laya Life in September 2014.

“We are confident of continued growth coupled with a rise in profits in 2014. Despite operating in an extremely challenging market that has seen many thousands of people drop their health insurance in recent years, Laya Healthcare is very well positioned to grow our membership, which currently stands at nearly half a million members.”

In 2012, the company implemented a medical costs management programme, which is leading to considerable cost savings and efficiencies across the business. By 2016, Laya anticipates savings of almost €100m yielding from the programme.

The figures show that the firm’s profits last year take account of non-cash depreciation costs of €1.36m.

Accumulated profits last year totalled €4m. The firm’s cash reduced from €15.29m to €11.69m.