After selling more than 70,000 new policies in 2017, taking revenues to £25.6m, the board took the extraordinary decision to donate the full surplus to its charitable arm. Tony McDonough reports
Liverpool health cash plan provider Medicash is donating its entire £720,000 surplus to good causes after selling a record number of new policies in 2017.
The not-for-profit organisation, based in Derby Square, would normally invest its annual surplus back into its business. However, this year the board took the extraordinary decision to donate the full technical account surplus from 2017 to charity.
The cash will now go into the coffers of the Medicash’s Charitable Trust to distribute across a wide range of health and wellbeing-focused charities and projects.
Over the last 10 years Medicash has donated more than £1m to charitable causes, with a further £102,000 committed to support such projects in 2017.
In it latest annual results, the company has reported a £1.3m rise annual income to £25.6m in 2017 – with a record number of new policies sold. Medicash said it sold more than 70,000 new policies during the year for the first time, taking the total number of policyholders to 227,255 – an increase of 13.9%.
Medicash has a history in Liverpool dating back to 1871 when it helped fund local voluntary hospitals before later evolving as the Penny in the Pound Fund, which many Liverpool people still remember today.
People can join as individuals and many also become members through their employers.
The organisation also revealed that 96.6% of all claims received were paid and the claims ratio (claims paid vs premiums received) decreased to 75.5% (79.5% in 2016). Commission paid to intermediaries increased to £806,000 (£640,000 in 2016).
Medicash finance director, Andy Roberts, said: “Health cash plans are continuing to grow in popularity among both employees and their employers and we are seeing this reflected in the growth in demand for our products.”
LaingBuisson’s 2017 Health Cover UK market report revealed there had been year-on-year growth in the corporate funded cash plan market for the past five years, with more than 1m people having such a policy paid for by their employer. Medicash now has a 14% share of this market.
Medicash completed a £4m minority investment in UK digital health provider, Now Healthcare Group, in June 2017.
Mr Roberts added: “After observing the evolution of the healthcare sector, we decided that now was the right time to invest in Now Healthcare Group. Demand for virtual GP and tele-pharmacy services is growing faster than ever.”