Growth strategy boosts HIF income

The Health Insurance Fund of Australia has broken through the $100 million revenue mark for the first time, reporting income of $106 million from premiums.

Perth-founded HIF has been pursuing a strong growth strategy, which has earned it the title of the third fastest growing health fund in Australia.

Much of its focus has been on states other than Western Australia with that strategy paying off in the 2013-14 financial year; according to its recently published annual report the percentage of policy-holders from markets outside of WA increased to 21.1 per cent of the total customer base compared to 12.6 per cent at the end of June 2013.

Overall, the number of policies held with HIF grew 15 per cent over the year compared to 7 per cent during the previous corresponding period.

The reported $106 million revenue was up 10 per cent, but only slightly aided by an increase in premium prices; HIF opted to increase premiums by less than 3 per cent in April - compared to the national average increase of 6.2 per cent.

The group’s reported profit did not paint such a rosy picture, however, with profit for the year down 40 per cent due to deferred acquisition costs for its new head office denting takings by $2.5 million, an increase in claims and operating expenses.

The total comprehensive income was also well down on last year from $9.4 million to $1.6 million.

The organisation incurred a $4.1 million write down in its two commercial properties, which it said was the main cause for the reduced comprehensive income.