WA-based health insurer HBF returned a record $876.6 million in benefits to its members, turned around a $130 million loss and maintained its market dominance during the 2010 financial year.
The fund recorded a $124.3 million profit thanks to operating surpluses for its health, insurance and HealthGuard businesses as well as strong returns on investments.
"The poor performance of our investments during 2008-09 had been directly responsible for the deficit recorded by the HBF Group that year," said HBF chairman Tony Iannello in the fund's annual report.
"In contrast, a recovery in the financial markets during the 2009 calendar year, couple with a change in the Group's investment strategy, resulted in investment gains of $86.2 million during 2008-09," he said.
"At the end of the year HBF remains exceptionally well capitalised with the Group's total investments valued at $765 million," said Mr Iannello.
HBF managing director Rob Bransby said that 2010 was one of the most challenging the non-for-profit fund had faced, because of changes to federal government policy and fierce competition from eastern states competitors.
But he said the fund had weathered the challenges well and recorded good operating surpluses in every business area.
Mr Bransby said HBF also turned around the losses experienced during the 2009 financial year, thanks to a recovery in the performance of its investments.
"Our share of the WA health insurance market stands at 62 per cent," he said.
Mr Bransby said he was most pleased by the benefits the fund was able to return to its members which was up 13 per cent.
In 2009-10, HBF's benefits paid to members for hospital treatment increased by 12.6 per cent to $653.5 million while benefits for ancillary services rose 7.2 per cent to $223.1 million.
The funds average premium rose 4.95 per cent.
Mr Bransby said one of the challenges faced by the fund was the hail storm on March 22, which generated 16,700 claims totalling over $68 million.
"For us it was an opportunity to step up to the plate when our members needed us most," he said.
"We have worked incredibly hard to make the experience of our members affected as painless as possible," Mr Bransby said.
