Bonitas reports strong 2024 performance, 'secures' place as 2nd-largest open medical scheme in SA

The Money Show's Stephen Grootes interviews Bonitas CFO Vurhonga Rikhotso.

The Bonitas Medical Fund has reported a strong financial performance for the year ended December 2024.

It highlighted a 'solid' increase in membership, 'exceptional' investment returns and a further strengthening of its reserves.

Bonitas delivered a 13.4% return on investment of members’ contributions, nearly double the 7.7% achieved the previous year and well above the strategic target of CPI plus 3,5%.

Membership grew to 731 576 beneficiaries, which the Fund says secures its place as the second-largest open medical scheme in South Africa. 

Principal members now number 358 717.

'Healthcare affordability will remain under pressure in the years ahead, but we are proud that... we’ve not only met the challenges of the past year but are well positioned to meet whatever the future brings', said chief financial officer Vurhonga Rikhotso.

In conversation with Stephen Grootes, Rikhotso acknowledges Bonitas is operating in a difficult environment, especially when it to growing memberships.

She highlights the impact of a high unemployment rate and the cost of living crisis.

"It is a challenge to attract the young person you would ideally want, because with the young member you then have a nice balance of the risk between the older member and the younger one... We are basically fighting for the same employed member as the other medical aids."

Vurhonga Rikhotso, CFO - Bonitas Medical Fund

"We are still looking quite good when it comes to our beneficiary age - were sitting at 35.9 as an average age which means we've got a good mix of the young and the old."

Vurhonga Rikhotso, CFO - Bonitas Medical Fund

At the same time, she adds, some young members coming on to schemes are also prone to chronic diseases, which poses a new risk for these companies.

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