Michael McGrath
Question:24. Deputy Michael McGrath asked the Minister for Health his assessment of the VHI’s annual results for 2013; and if he will make a statement on the matter. [27055/14]
View answerWednesday, 25 June 2014
Questions (24)
Written answers
On Tuesday 17 June this year I welcomed the announcement by the VHI of its annual results for the year 2013 and I am pleased to note the positive financial results of €65m profit after tax. This is an improvement of €10.7m over the corresponding period last year (when reported profits were €54.3m) and represents a marked improvement on the figures for 2011 (€7.4m). This is a positive indication of the future sustainability of the Irish private health insurance market.
I would draw the Deputy's attention to the significant progress made since the Government Decision of 3 December 2013 to achieve authorisation of VHI by the Central Bank of Ireland (CBI). In particular, I welcome the fact that VHI has negotiated a further reinsurance deal with Berkshire Hathaway for a four-year period 2014-2017. VHI believes it can achieve the solvency levels required for authorisation without the need for capital from the Exchequer and a consequent State aid process with the EU Commission. The improved profit level reported recently for 2013, the new reinsurance deal and a reported fall in claims costs of 2.1% for 2013, will strengthen the VHI case for authorisation by the CBI.