Health insurer Vhi Group said it returned to profits in 2024 after what it called a difficult year in 2023 where healthcare expenditure exceeded premium income.
Vhi today reported a net surplus of €36m for 2024, compared to a net deficit €43m in 2023.
Vhi reported €1.88 billion in gross written premium for its private medical insurance business to mark the tenth consecutive year of growth in private medical insurance membership.
The company remains the largest health insurance provider in Ireland with over 1.2 million members.
It said its other insurance offerings including travel, life, dental and international health insurance were also key drivers of growth with membership increasing by 7% in the year and total income on these products reaching €31m.
Vhi last year paid claims of €1.74 billion, an increase from €1.68 billion in 2023, which it said reflected a continued increase in both the demand for healthcare and the cost of delivering that care.
This represented a 26% increase in the cost of claims since 2019, which Vhi said reflects the unprecedented growth in healthcare demand, rising treatment costs, and the increasing breadth of medical care available to members.
In March Vhi increased its average prices by 3% across its health insurance plans due to the sustained rise in the number of people accessing healthcare and the associated costs of delivering this care.
Brian Walsh, Vhi’s group CEO, said that following a challenging year in 2023, the company reported a surplus of €36m for 2024 which represents a solid financial recovery and a successful year.
“This financial stability allows us to continue to invest in the expansion of care and services for our members. Vhi exists solely for the benefit of our members, and any surplus made is reinvested to deliver better value, better healthcare and better services,” he said.
Vhi said it continued to invest in its health insurance and health provision businesses last year, adding that it delivered in excess of 510,000 member healthcare interactions across its own services.
“While the year saw growth and financial recovery, it was however necessary to increase prices to ensure that we could continue to deliver the very best of healthcare for our members,” Mr Walsh said.
“We are committed to keeping premium prices as low as we can, while dealing with the reality of both the rising cost of healthcare and the increased demand. We also implemented a broad range of cost containment measures within the business in 2024 without compromising our quality of care and service,” he added.
