Bonitas says the Fund’s solvency ratio has increased to 25%, with its reserved increasing from R3.2 billion to R4 billion. Bonitas’ 2017 Annual Report shows a solid surplus of R730.20 million, according to Principal Officer Gerhard Van Emmenis. “It was an exceptional year for us in terms of financial results,” he said. “We anticipate a slow but continuous growth in 2019 as our cost-savings initiatives continue.”
Van Emmenis pointed out that judging a medical scheme according to its solvency ratio is not necessarily the best way to determine its fiscal health.
“It has been recognised globally and by the Council of Medical Schemes in South Africa that the existing system of determining solvency rations needs to be revisited,” he said. “The CMS would like to introduce a solvency framework that will promote growth in the industry while ensuring healthy competition amongst the schemes. And while financial stability should be maintained we believe there is no ‘one size fits all’ and individual circumstances of each scheme should be taken into account.”
Either way, he says Bonitas is “in very good health” and has the financial stability to strengthen its position as a leading medical aid in South Africa.