Vhi records 2011 surplus of €7.4m

Vhi Healthcare has recorded a surplus after tax of €7.4m for the 12 months to end December 2011, the company said today.

This compared to a deficit after tax of € 3.1m in 2010 and a deficit after tax of €41.7m in 2009.

"2011 was a difficult year for both Vhi Healthcare and the private health insurance market however a number of business strategies driven by the Board and the management team are helping to put Vhi Healthcare back on a sustainable footing for the futurem," Chairman Bernard Collins said.

However the company said it is €50m short of financial sustainability and has expressed concern at the rising cost of public beds in private hospitals.

"One area that remains a concern for us is the rising cost of private beds in public hospitals," Chief Executive Declan Moran said.

" While I recognise the Minister's decision to maintain the increases in the private beds in public hospital below 5% for 2012, this takes no account of the fact that the cost of private beds in a public hospitals has risen by some 41% since 2009."

Vhi said its hospital insurance business continues to be loss making.

Despite cash reserves of €295m, the company said it will need a further cash injection of up to €250m to meet Central Bank and EU requirements.

Total claims incurred for 2011 amounted to €1.234bn, down 5.6% on the previous year.