State-owned health insurer VHI Healthcare today reported a surplus of €112 million for the year to the end of February.
Some €55.4 million of total surplus was generated from day-to-day operations, and the remainder arose from the release of funds from the company's risk reserves.
The company said that the operating surplus equates to 4.9 per cent of premium income.
At a press conference in Dublin to publish its annual report, VHI chief executive Jimmy Tolan said based on the data available the operating surplus for the March to December period would be in the region of €15 million to €25 million.
"This was because we expect that a greater number of our customers will avail of more medical services in recently completed new medical facilities," Mr Tolan said.
The company said it earned premium income of €1.15 billion and paid out €1.005 billion to cover 535,000 medical procedures.
The result was an operating cost ratio of just below 8 per cent of premium income, the company said, adding that this level "compares favourably with general insurers and international private health insurers".
The insurer noted that its pay-out ratio to premium income was 87 per cent, significantly higher than its competitors.
VHI said it was in the process of applying for an insurance licence with the Financial Regulator, with a view to being regulated from January 1st next.
The company also said it noted a ruling from the Court of First Instance in Luxembourg that upheld the principles of community rating and risk equalisation.
A decision from the Supreme Court in relation to the appeal by Bupa against the Government's decision to introduce risk equalisation was awaited, VHI said.
Mr Tolan said post regulation the company would have the opportunity to diversify its products and broaden the geographic reach of its services.