A year of challenges
2015 was a challenging year for the Helsana Group. As expected, the result was slightly positive, our finances solid. The foundation is in place for becoming one of the industry top three in terms of customer perception.
As expected, 2015 was a challenging year for Helsana. At CHF 16 million, the result was just positive. The underwriting loss was offset by a good investment result.
The underwriting loss in basic insurance was planned. However, it was higher than expected because the benefit costs rose more sharply than predicted. In supplementary insurance, rising benefit costs as well as the decision to forgo premium adjustments in previous years led to a modest result.
2015 was dominated by the creation of a new structure intended to achieve the strategic target defined in 2014 of becoming one of the industry top three in terms of customer perception. This foundation has now been laid.
There was one change in accounting: For the first time, the Helsana Group accounts are being presented in accordance with the current accounting standards under Swiss GAAP FER as at 31 December 2015. As a consequence of this change, it is not possible to make a direct comparison with previous years.
The Helsana Group's benefit costs continued to rise in 2015 and amounted to CHF 5.876 billion. At just under CHF 6 billion (CHF 5.982 billion), premium income was also higher than it was in 2014.
The increase in benefit costs is due to the continuing trend in all cost types. After several years of lower growth, the yearly cost increase is once again in line with the long-term level of more than 4 %. In KVG business, medical costs, the costs for physiotherapy and home care, and medication costs saw a significant rise. As in 2014, medical costs were higher mainly because of the increase in approved specialists. The costs for physiotherapy and home care increased in particular because of the change in volume. With the end of the cost-cutting measures initiated over the past several years, medication costs have started to rise again. In VVG business, the main driver of cost increases stems from supplementary hospital insurance.
billion CHF
in benefits
«Working from our position of strength, we want to continue to be a committed partner in helping to shape healthcare.»
Prof. Dr. Thomas D. Szucs, Chairman of the Board of Directors
billion CHF
in premium income
million CHF
in earnings
For 2015, the Helsana Group budgeted an underwriting loss. At CHF –137 million, the underwriting result was somewhat worse than expected. The result corresponds to a combined ratio of 102.3 %.
In KVG business, the combined ratio was 103.7 %. This high value for the Group is mainly because benefit costs rose more sharply than expected. As a result, 2016 premiums had to be increased significantly as well, following increases in 2013, 2014 and 2015.
The combined ratio in VVG business was just barely in positive territory at 98.9 %. This is a result of increased benefit costs and the decision to forgo premium adjustments. In accident insurance business, the combined ratio was 97.2 %.
«We will work tirelessly on behalf of our customers. We want them to see our commitment and recommend us to others.»
Daniel Schmutz, CEO
Combined ratio
The financial markets were less positive in 2015 than in the previous years of stable growth. Even in this environment, Helsana once again outperformed the benchmarks. In 2015, the performance of Helsana's investment specialists beat the benchmark by 0.8 percentage points. Overall performance was 1.6 % on fixed assets of CHF 5.8 billion. The financial result was CHF 154 million and thus improved the overall result significantly. In recent years, our broadly diversified investment portfolio has made an ongoing contribution to strengthening financial capacity and has allowed Helsana to improve solvency and to attenuate premium increases for customers.
billion CHF
equity
We want to be one of the industry top three in terms of customer perception by 2018.
All companies in the Helsana Group continue to meet the legal requirements concerning solvency. As at the end of 2015, the Helsana Group had CHF 1.958 billion in equity capital. Its market position therefore continues to be solid. Helsana remains well prepared for the future.
Despite the difficult market situation and costs that continue to rise sharply, Helsana looks to the future with confidence. It aims to continue to play a leading role in Swiss healthcare and to help make health services competitive, high quality and at the same time affordable for all.
Helsana re-defined its strategic focus in 2014, setting itself the target of earning the highest marks from its customers by 2018. In all that we do, we will ask how we can work on behalf of our customers.
In deciding on this new strategic direction, Helsana was able to rely on the strength, expertise and professionalism of its employees. The total number of employees has remained constant. Helsana is only at the beginning, but it has created important conditions for becoming one of the industry top three in terms of customer perception. Helsana is well prepared to continue down this path.