Health insurer VHI swung back into profit last year despite paying out more for claims after it raised premiums again in 2024 and reaped strong returns from its investment portfolio.
The State-owned group said on Wednesday that it paid out a record €1.74 billion in claims last year, up from €1.68 billion in 2023 and 26 per cent since 2019.
This reflected a “continued increase” in demand for healthcare and the cost of delivering care, the insurer said, as well as rising treatment costs and an expansion of the treatments available to its customers.
Still, VHI swung to a net surplus of €36 million, a “significant financial turnaround” after reporting a net deficit of €43 million for 2023, it said.
Brian Walsh, VHI group chief executive, said while 2024 was a year of growth and recovery, “it was, however, necessary to increase prices”. VHI increased premium prices twice in 2024 and once already in 2025.
“We are committed to keeping premium prices as low as we can, while dealing with the reality of both the rising cost of healthcare and the increased demand,” Mr Walsh said. “We also implemented a broad range of cost containment measures within the business in 2024 without compromising our quality of care and service.”
VHI’s gross written premium – the total value of its written premiums – climbed from nearly €1.7 billion to just under €1.9 billion in the year, it said.
Meanwhile, VHI’s investment portfolio delivered “strong returns”, the group said, with investment income of €40 million after losses in 2022 and 2023.
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“Following a challenging year in 2023, we are pleased to report a surplus of €36 million for 2024, which represents a solid financial recovery and a successful year,” Mr Walsh said. “This financial stability allows us to continue to invest in the expansion of care and services for our members. VHI exists solely for the benefit of our members, and any surplus made is reinvested to deliver better value, better healthcare and better services.”
He said the group had invested in its health insurance and health provision businesses in the year, delivering more than 510,000 healthcare interactions for its members.
In January, VHI announced an average price increase of 3 per cent across its health insurance plans effective from the beginning of March.
In a statement it said there had been a 12.5 per cent increase in private hospital claims costs last year compared to 2023.
It also said the cost of delivering services “has also risen, driven by increased costs in private hospitals, associated healthcare professional costs and the increasing costs of day-to-day care.”
