Medshield is a not-for-profit medical scheme operating in South Africa, providing medical cover to approximately 165,401 beneficiaries at FY18. The scheme was established in 1996, following the amalgamation of Universal, Medicaid and Medcare medical aid schemes and is self-administered.
The rating balances Medshield Medical Scheme’s (“Medshield”) strong solvency and liquidity, against weakened earnings and a moderate membership base, as well as remedial actions aimed at stemming net healthcare losses and enhancing the sustainability of net results. The revision of the outlook to Stable, from Positive, is premised on ongoing earnings strain that is likely to persist in FY19. This is expected to see a moderation in solvency to a medium term range of 32%-34%, limiting the likelihood of upward rating movement.