Financial strength

Financial strength

You can be secure in the knowledge that MPS is financially strong. This is reflected in our Annual Report and Accounts.

We put the interests of members first. Because we are owned and governed by the membership, we take decisions that support members’ needs, including being here when members seek assistance.

There are often long delays between an adverse incident occurring and the ultimate settlement of any subsequent claim – the average time-lag between an incident and the claim being reported to MPS is about three years with further long delays before settlement.

Because of the uncertainty caused by these delays, it is of paramount importance to MPS members and their patients that MPS’s financial position is strong enough to cope – particularly as the value of claims can inflate at a rate significantly in excess of retail price inflation.

MPS must always ensure it has enough money in its reserves to account for claims it is currently handling, as well as any potential future claims that may arise. This means, each year, we carefully assess our financial situation to ensure we can provide for these eventualities, and continue to protect members both now and in the future.

At the end of 2010, the total assets available to meet claims was slightly below £1.6 billion and these assets are sufficient to meet both reported and potential future claims – a fully funded position. There are many factors which can affect future claim values and as a matter of prudence, MPS holds reserves to cover these factors.

Corporate governance

Transparency is a key aspect of accountability to which we fully subscribe. We publish clear information about our financial position and the remuneration of directors each year in our Annual Report and Accounts. Members are entitled to an explanation of the reasons behind any decisions Council might make that affect them.

Although MPS is not a listed company, it chooses to comply with the relevant sections of the Combined Code prepared by the Committee on Corporate Governance in the UK.

MPS exists solely for the benefit of members and is fully accountable to them.