HBF Group nearly tripled its annual operating surplus to $73 million last financial year, up from $25 million previously.
The group’s core business, HBF Health, achieved a surplus of $62 million, up from $22 million in the previous year and a deficit of $10 million in the year before that.
HBF managing director Mike Gurry said the improved financial result was helped by the strength of the stock market during 2003-04, with investment income doubling to $29 million.
The group also achieved higher returns from its ‘other’ business activities, including general insurance.
Its pre-tax profit from general insurance jumped to $7 million from $1 million previously.
“This is very significant to HBF because as a mutual organisation we believe this shows we can provide a broader range of valued products and services to members, while at the same time increasing the financial strength of the group as a whole,” he said.
HBF will retain its surplus to help the organisation manage the impact of an expected increase in hospital claims.
“The ageing of the population and the continued increase in the cost of new drugs and procedures means our claims will continue to rise – especially as baby-boomers hit the high claim years of 65 and over,” Mr Gurry said.
Total benefits paid by HBF Health rose by 4.3 per cent to $537 million.
Benefits for services received in hospital were $386 million, while benefits for ancillary health services were $151 million.
Membership was relatively stable at 937,048.