Health cash plan provider Medicash increased its employer-paid policyholder numbers by almost 100% in 2011 but had a less successful year financially.
The annual results of Liverpool-based health cash plan provider show a rise in employer-paid policies helped Medicash to increase its overall policyholder base by one per cent.
However the company showed a 3.7% decline in premiums written for the year to £19,624,000, compared with £20,380,000 in 2010.
Medicash said this was due to absorbing the Government's 1% rise in Insurance Premium Tax from January 2011 and a reduction in the average premium per policy.
Premiums are expected to increase in 2012 due to the continuing growth in the policyholder base.
Medicash paid back to policyholders, through claims, 83.1% of net premiums written in 2011 compared to 80.1% in 2010.
The increase in claims paid in 2011 has resulted in a loss for the insurance operations of the Group of £24,000 compared to a surplus of £561,000 in the previous year.
Medicash incurred a pre-tax loss on ordinary activities of £983,000 in 2011 compared to a surplus of £2,338,000 in the previous 12 months, largely due to the value of the company's investment portfolio at the year end.
Sue Weir, chief executive of Medicash, said: "Despite difficult trading conditions during the year, we are pleased to report growth in the policyholder base which has been achieved on the back of the company's most successful year for new sales into the corporate market, which continues to grow relative to the individual market.
"The product offerings to both the corporate and individual markets remain extremely competitive. We continue to progress innovative solutions to this market while balancing the needs of our policyholders against maintaining viable plans."
The results for 2011 include Medicash subsidiaries Medicash Health Benefits (Services) Ltd, a third party administrator in insurance services, and Medicash Charitable Trust.
