$1.6m profit for group
Travel bans increase overall cost of medical claims for company
AN insurance service provider says unprecedented travel bans imposed as a response to minimising the spread of COVID-19 have increased the overall cost of medical claims.
FijiCare Insurance Ltd (FIL) executive director Avi Raju said 2020 had been a challenging and unprecedented year given the ongoing COVID -19 global pandemic.
“For FijiCare, the closure of international borders as well as the overall increase in local medical costs has resulted in an escalation of our medical claims. Therefore, we are enthusiastic about the opening of Nasese Private Hospital and potentially other private medical providers, which we expect will increase medical facility options for our policyholders.
“Additionally, it has been pleasing to note that international travel restrictions for medical treatments are being gradually eased. From November 2020, India has opened its borders for medical evacuations allowing FijiCare policyholders to access overseas medical treatments after seven months of COVID-19 lockdown restrictions in 2020.”
The FijiCare Group recorded a consolidated profit after income tax of $1.6 million compared with $4.4m in the previous corresponding period.
The group also recorded an increase of $1.2m in revenue from insurance activities which resulted in total net insurance revenue of $33m.
Its consolidated incurred claims increased to $25.2m in the 2020 financial period compared with $22.6m recorded in the 2019 financial period while its net assets and shareholders equity position improved to $16.m at December 2020 compared with $15.3m as at 31st December 2019.
“Despite the decrease in profitability in 2020 which was anticipated, the group continues to be in a sound financial position, with a strong balance sheet and solid liquidity position.
“Our wholly owned subsidiary company, VanCare Insurance Ltd, has also demonstrated resilient financial performance. We remain optimistic about our financial performance in 2021,” said Mr Raju.