Health insurer Laya posted 22% profits rise in 2015

Laya, the country’s second-largest health insurer, posted a 22% increase in profits in 2015, but faced increased claims from public hospitals last year.

Pre-tax profit at the Cork-based insurer increased to €15.7m, according to new accounts.

Revenues at Laya Healthcare Ltd — formerly Quinn Healthcare — rose by 15.5% to €59.27m.

The firm — which recent figures show has more than 560,000 subscribers — was purchased by international insurance giant AIG, in 2015.

“Between 2013 and 2015, the volume of claims from public hospitals increased by 10% and spend increased by 31% — this is driving a negative price spiral in the market,” managing director Dónal Clancy said.

“We remain in a very strong position in the market to continue our growth into the future,” Mr Clancy said, adding that the firm faced higher claims from public hospitals in 2016.

Laya recently announced an average 5% increase in premiums and blamed an “unsustainable increase in the cost and volume of claims in public and private hospitals”, as well as what it said was “a significant increase in consultant costs”.

Staff numbers at Laya increased from 468 to 509 people in 2015, while staff costs rose from €24.9m to €26.2m. The directors’ report states “AIG’s global scale and reach presents the company with the opportunity to expand the Laya Healthcare offering in Ireland and across Europe where AIG has significant plans for growth”.

The company’s accumulated profits totalled €22.5m at the end of 2015. It had a cash pile of over €26.8m.

After paying corporation tax of €1.96m, it posted a net profit of €13.8m.