RHB believes this will be aided by more people taking up private healthcare insurance to cover the rising healthcare costs. Nevertheless, the company guided that if the current business situation of a higher loss ratio prevails, the insurance business could report losses for up to three years.
RHB Bank Singapore analyst Shekhar Jaiswal has kept “neutral” on Raffles Medical Group (SGX:BSL
) (RMG) with a lower target price of 90 cents after fine-tuning and trimming the company’s FY2024 to FY2026 earnings by 12%-7%.
This is largely to account for slower reduction in the company’s insurance business losses. During its 1HFY2024 ended June results briefing, RMG noted that it expects a strong ramp-up in its insurance business in the coming years.
