Image placeholder
Profmed (2022-03)
  • Profmed
  • Year : Mar 2022
3 Tokens
USD 300.00

Profmed has reported fairly healthy and consistent membership growth over the review period, although the scheme remains small, with a share of about 2% of total closed schemes’ contributions. The membership profile has also been stable, but comparatively risky with a pensioner ratio of 18% and average beneficiary age of 40 years. We nevertheless positively consider the very high membership diversification, with the majority of the membership base being individuals and no material exposure to employer groups. While the scheme has shown some success in stabilising members’ aging as it grows, we expect that improvements in the risk profile will be gradual and over a long timeframe.

Additional Information

The Stable Outlook reflects expectations that Profmed’s capitalisation will stabilise within a rating adequate band despite potential near term reduction, and earnings will align with historical levels in a more normalised claims environment. Liquidity metrics show sufficient buffers to absorb an increase in operational cash flow requirements. The rating could be downgraded if the solvency margin reduces on a sustained basis, especially if this is towards the lower end of management’s target range.

Related Publication

Hosmed Medical Scheme (2011-05)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

South African Medical Schemes During COVID-19: Short-term Gains with Longer-term Pain

Over the near term, no major rating movements are expected within the GCR portfolio, amidst economic challenges emanating from the COVID-19 pandemi...

Three months in, the challenges are increasing but indications suggest that larger corporates may weather the storm.

  • GCR expects performance across almost all corporate sectors to remain weak for the remainder of 2020 due to a collapse of consumer confidence....
Available Purchase Options: