Both premium income and proportion of claims paid dropped in 2013 for Simplyhealth, however the medical insurer hit all financial targets set for the year.
On premium income, Simplyhealth saw a drop of 1% to £393 million, claiming a stable market but that consumers have less money to spend.
The amount paid in claims also fell in 2013. Simplyhealth's loss ratio - the proportion of premiums paid in claims - saw an underlying fall of 5%.
Simplyhealth paid £245.5 million claims in 2013. The insurer said integration of Groupama's PMI business made the difference, as shared knowledge and increased buying power reduced costs and improved efficiency.
Claims on health cash plans for everyday health care needs such as visits to the dentist, opticians, physiotherapist or chiropractor equated to 55% of those claims, with private medical insurance accounting for 41% and 4% attributed to dental plans.
In addition, Simplyhealth retained a profit of £8.7 million, from an operating profit of £16.1 million, adding to reserves that now stand at £258 million. The company is now within the requirements for Solvency II, due to come into force in 2016.
Romana Abdin, Chief Executive, Simplyhealth, said: "2013 also saw the completion of our new centre of excellence for private medical insurance in Bristol's historic Clifton Downs, which brings with it new ways of working which signals our commitment and our intent for the future.
"Denplan, which has been part of Simplyhealth since 2011, also had an extremely positive year, adding a significant contribution to the Group income in 2013. This combined Group success meant that we were able to donate £1.4 million to health related charitable and community projects helping us to make a difference to those in our communities."