Medical scheme gets a clean bill of health

Gen-health Curator Boysie Phehlukwayo, says an A rating confirms Gen-health’s financial strength and stability and believes its ongoing relationship with Sechaba Medical Solutions will ensure a sustainable track record moving forward.

The rating, which is based on a scheme's ability to pay claims, indicates that Gen-health's claims paying ability is high with good protection factors.

This is the first time the scheme has been rated by GCR and has done well to enter the ratings with such a solid rating, reinforcing its financial strength with a year to date solvency ratio of 43%.

According to Sheri Few, analyst at GCR, the curator's well-articulated business strategy and corrective action implemented to ensure the long-term sustainability of the scheme, were compelling factors in the rating.

The rating was further supported by the scheme's marked improvement on an operating and net level in 2006. Moreover, solvency levels, with the scheme reflecting a statutory solvency margin of 34% in 2006 (well above the Council for Medical Scheme's 25% requirement), are deemed to be comfortable with the Scheme displaying a highly conservative investment portfolio with strong liquidity ratios.

Commenting on the rating, Gen-health Curator Boysie Phehlukwayo, said an A rating by an independent company confirmed Gen-health's financial strength and stability through its ability to pay claims and believed its ongoing relationship with Sechaba Medical Solutions would ensure a sustainable track record moving forward.