By Phiwa Sikhondze
The Chief Executive Officer of SwaziMed, Peter Simelane has reassured members that the company remains financially healthy. Simelane disclosed this during the Business Eswatini AGM held last week Friday at The Royal Villas.
His remarks come at a critical juncture as the medical aid industry faces challenges related to rising operational costs and member contributions.
Simelane reported that as of June 2024, SwaziMed has a solid financial standing, with an impressive E88 million in assets. He stated, “Today I’ve come to assure the membership of Business Eswatini that the fund is still very viable and strong,” countering perceptions that SwaziMed is sinking and unable to provide adequate support to its members.
Simelane provided a detailed overview of the organization’s financial performance over the past six months, highlighting a benefit income of over E200 million. He projected that by the end of the year, the total benefit income would surpass half a billion.
Addressing benefit expenditures, Simelane disclosed that SwaziMed has paid out approximately E250 million in claims thus far. He said after deducting operational costs of E29.1 million, the organization still retains an underwriting surplus of E6.4 million. He further noted that when combined with investment income, the total surplus rises to E13.7 million, showcasing the fund’s ability to manage its financial resources effectively.
“We currently have about E88 million in cash across different banking institutions,” Simelane noted, assuring members of the organization’s liquidity. He added that they are currently working on converting an overdraft with Standard Bank to a loan, and that will add to the value of their current assets.
Simelane acknowledged the broader challenges facing the medical aid sector, particularly the disparity between rising healthcare costs and member contributions.
To address these challenges, he emphasized that Swazi Med is exploring alternative business opportunities to sustain its operations and prevent significant increases in member contributions, which could impose additional financial burdens on members.