Leading cash plan provider Sovereign Health Care has announced its highest ever income of £11.3m, which is the 5th consecutive year of increase, whilst paying out £7.1m in claims to customers.
The Bradford-based business has also recently expanded its product offering into the income protection market through a partnership with PG Mutual, as well as launching a new brand identity and website to provide the platform for continued growth.
For the year ended 31 December 2016, Sovereign recorded a pre-tax surplus of £8m, with income up £300,000. Sovereign’s reserves continued to exceed solvency capital requirements, with its investment portfolio and cash deposits worth around £63.2m at year end, an increase of £7.4m on last year.
Sovereign Health Care has a long history of charitable giving, which is made possible because the company has no shareholders. Any surplus made is available to either reinvest in the business or award to community or charitable initiatives with a health and wellbeing focus.
In 2016, Sovereign donated just over £500,000, equating to over 38 per cent of Sovereign’s insurance operations surplus. This enabled 184 grants to be made to good causes in Bradford and the surrounding area during 2016, in line with previous years’ donations.
Commenting on the results, Sovereign chairman, Dr Bob Dugdale, said: “I am delighted to report that, once again, the business has had a very successful year helping thousands of our customers with the cost of their everyday health care.
“Sovereign’s performance allowed it to make a substantial donation of just over £500,000 to worthy causes that touch people’s lives within our community in a positive and meaningful way.
“Overall, 2016 was a year of both consolidation and investment, particularly regarding our IT capability and business processes. That investment is already providing a return and, with a refreshed brand and new website, we look ahead to the rest of 2017 with confidence.”
Founded in 1873, Sovereign Health Care is one of the UK’s longest established providers of health care cash plans to individuals and businesses.
Sovereign chief executive, Russ Piper, added: “We are very pleased to have such a high claims pay out figure as it demonstrates both the demand for, and relevance of, our cash plan products for businesses, employees, individuals and families.
“Charitable donations are hugely important to us, so it is imperative that we are able to continue to make significant contributions to good causes every year. We were able to do so again in 2016, which is gratifying for all of us at Sovereign.
“We have also achieved our growth, claims payments and donations despite the Government continuing to increase insurance premium tax (IPT), something which we think is inherently unfair on health-related insurance products. We believe it is wrong to penalise people who are looking to gain greater control of their health and prevent them becoming a burden on the NHS.
“Our strong products, principled approach to health care cash plan provision and excellent customer service continue to set us apart. Following ongoing investment in our people, processes and technology, along with the rebrand and new website, we are ideally placed to further communicate our powerful offering within new and existing markets.”