GCR has maintained the national scale ZAR currency claims paying ability rating of Profmed at A+ (single A plus). The rating is defined as having a high claims paying ability, with above average protection factors. Profmed is a restricted medical scheme catering exclusively for professionals holding at least a 4-year or post-graduate degree. Since the scheme’s inception in 1959, it has grown to accommodate nearly 62,000 beneficiaries.
Cognisance was taken of the initiatives implemented by Profmed in response to decreasing principal membership levels experienced between F04 and F07. In this regard, the scheme has subsequently evidenced continued steady growth in members. Furthermore, the scheme remains well diversified in terms of intermediaries and employee groups. The aged nature of the scheme’s membership base is, however, of some concern. Initiatives aimed at addressing this are noted. The rating was also supported by the fact that the scheme’s level of reserves and statutory funding ratio have remained strong over the review period. In addition, Profmed’s investment portfolio has generated healthy investment returns, thereby providing strong support to the net result. A less conservative investment stance, however, served to reduce key liquidity measures during F10, although these remained at more than comfortable levels.
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