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New Zealand’s largest health insurer has reported a 62 percent increase in its bottom line.
The Southern Cross Health Society said its net surplus included an operating surplus of $10 million and about $39m primarily generated by investments.
(Year to June 2021 against 2020)
- Surplus after tax: $52.5m vs $32.4m
- Revenue: $1.28b vs $1.15b
Society chair Greg Gent said it was a strong result in a challenging year due to the pandemic.
“We are all still operating in a climate of uncertainty and so we’re very pleased to have delivered such a strong result.”
Gent said the strong investment income reflected the last five years of the society’s investment activity, but was not likely to be repeated.
“While this year’s investment income contributes funds to the group investment portfolio, which will give members confidence that the business has the means to pay future claims as it grows, such is the nature of investments that we do not expect our portfolio to repeat this performance every year.”
He said the society returned 87 cents in claims to members from every dollar received in premiums, compared with an average of 62 cents among other New Zealand health insurers .