Industry news: Medscheme moves into financial services

Speaking at the introduction of two Medscheme financial products, the Strategic Healthcare Fund and the Medscheme Collective Investment Scheme, Lisa Gibbon, Managing Director of Medscheme Financial Services said the company was well on its way to providing clients with access to a wide range of value-added financial products.

“The expansion into the financial service arena is central to the growth strategy of the company, and is based on complementing Medscheme's traditional healthcare business by offering a comprehensive range of group and individual life and investment products and services,” she said.

The extensive Medscheme database of existing members and clients, combined with its strong relationships with clients, for whom it administers medical schemes, provides a strong base for rapid growth into financial services. Medscheme Financial Services currently provides services under the banners of Medscheme Life and Medscheme Asset Management.

“Our acquisition by Lethimvula Investments Limited, transforming the group into South Africa's largest black-owned healthcare provider, has provided additional impetus by offering opportunities to considerably broaden our customer base” says Medscheme Group CEO, André Meyer. “Meeting our clients financial needs by providing risk and savings-based retail products will offer major future opportunities and ultimately position Medscheme as the largest black-owned healthcare and financial services Group in South Africa,” says Meyer.

One of three operating divisions within the company, Medscheme Financial Services had already begun reaping the benefits of diversification, by harnessing its health and financial risk management expertise to offer competitive group and individual insurance schemes.

“Medscheme Financial Services contributed R142,2 million in revenue toward recent announced financial results. Of this the majority (R 134,5 million) was provided from life insurance income,” Gibbon said.

Medscheme Life's Individual products are designed specifically with the South African family and the individual in mind and offer benefits ranging from funeral plans, health continuation plans, traditional life assurance and dread disease coverage.

Group schemes offer comprehensive risk-based employee benefits to the corporate market.

Within Medscheme Financial Services, Medscheme Asset Management has established itself as a leading provider of Cash Management Services, specialising in Working Capital management for institutional investors such as medical schemes and retirement funds, as well as for corporates and individuals.

“Our recent restructuring and the creation of distinct, independent business units trading off the market acceptance of the monolithic Medscheme brand is central to our growth strategy.”

“The announcement of the launch of two new products today is indicative of our innovative approach to diversification within the financial arena. We anticipate strong growth in the future,” Gibbon concluded.

Mike Duly
Senior Manager Group Communications and Branding
Medscheme
Telephone : 011 510 2310
Cellular : 082 800 8952
Email: michaeld@medscheme.co.za