Sympany closes 2012 with profit
Basel, 10. April 2013 - Premium income and benefit payments are in equilibrium, while Sympany has taken various measures to significantly reduce operating expense yet further. The success of the insurance business was complemented by the pleasing performance of capital investments Net profit, at CHF 21.6 million, is 33 per cent up on the preceding year.
CEO Dr Ruedi Bodenmann: “Our customers will benefit from our very pleasing result and we project a very moderate premium round in 2014”.
Customer portfolio stabilised
Sympany was able to successfully stabilise its customer portfolio in 2012. While the overall number of customers continued to decline slightly, Sympany successfully increased the number of new customers compared with the preceding year. Sympany’s private customer portfolio stood at around 203,000 as at 1 January 2013. There was further growth in the corporate customer segment and in property and liability insurance for private customers. Sympany will prioritise the achievement of additional growth in the 2013 financial year.
Premium income and benefit payments in equilibrium
Total premium receipts declined by 8 per cent to CHF 919 million as a result of the fall in the number of customers and a trend towards cheaper premium models. Despite this, the relationship between premium income and benefit payments remained in balance: Sympany paid out net benefits amounting to CHF 781 million in 2012, which represents a decline of CHF 63 million or 8 per cent. Due to changes in the financial reporting methodology, the decline in benefit payments is reported as CHF 43 million or 5 per cent.
Consistent cost management, successful IT switch
Sympany places the needs of its customers at the centre of its efforts. Sympany achieved streamlining and efficiency gains in 2012 by adopting a consistent approach to the consolidation of previous acquisitions. This streamlining, together with strict cost management and a change in the financial reporting methodology, led to a fall in operating expense of 22 per cent to CHF 113 million compared with the previous year. Sympany invested in a new IT system, to which it has recently successfully switched. The company believes that the new system will lead not only to improvements in service quality but also further savings as a result of automation and process simplification.
Moderate premium policy
The strong result allowed Sympany to strengthen its reserves. Sympany exceeds all reserve requirements and has a very sound financial base. The pleasing annual result, the positive development of the capital investments, the sound reserve situation and the efficiency gains achieved will be passed on to Sympany’s customers: in the basic health insurance sector, following on from the restrained premium increases of the last two years, Sympany expects to see another very moderate premium round in 2014.
Ruedi Bodenmann in conclusion: “I am pleased with this good result and would like to take this opportunity to thank our employees for their tireless efforts on behalf of our customers. Sympany will also continue its efforts to strengthen its partnership with the service providers, particularly in the Basel region.”
Dr Siegfried Walser, Chairman of the Foundation Board: “I would like to thank the Executive Board and each and every one of Sympany’s employees. They have contributed to the financial success of the first year of my term as Chairman of the Foundation Board. Sympany is on the right track. I hope that health policy continues to move in the right direction and remains focused on competitive structures.”