Federal Government changes to the insurance market have helped medical indemnity insurer MDA National Group more than double its after-tax surplus and its net assets.
Perth-based MDA dominates the Western Australian medical indemnity market and has a growing share of the national market, with 40 per cent of medical students being MDA members.
It achieved an after-tax surplus of $23.1 million in the year to June 2004, up from $10.8 million in the previous year.
It said Government reforms introduced in 2003 to boost the financial health of the medical indemnity industry contributed $10.3 million to the annual surplus.
Its underwriting result improved to a $29.3 million surplus.
MDA also benefited from a big increase in investment income to $10.8 million, primarily as a result of gains on its listed shares portfolio. The higher surplus helped the group lift net assets to $44.5 million.
“The accumulated net assets of the group are being built to secure the long-term viability of a doctor owned and controlled indemnity provider,” MDA chief executive Peter Smith said.