The health maintenance organization (HMO) industry registered a 122.95 percent increase in net income on the back of a 20 percent rise in revenue in 2024.
The industry posted a net income of P979.8 million last year, a turnaround from the P4.27 billion net loss recorded in 2023, the Insurance Commission said in a statement.
“This is explained by the higher increase in the sector’s total revenue compared to its total expenses,” Insurance Commissioner Reynaldo Regalado said.
HMO revenues rose 20.12 percent to P79.37 billion last year from P66.08 billion in 2023.
The commission said this growth was mainly due to an 18.43 percent increase in membership fee collections, comprising 95.3 percent of the total HMO revenue.
Meanwhile, the HMOs’ expenses expanded by 11.44 percent, rising to P61.05 billion in 2024 from P55.46 billion posted in the prior year.
The IC said this was due to a 10.08 percent increase in healthcare benefits and claims paid, although the actual numbers were not disclosed.
The industry saw a 23.85 percent increase in total assets to P75.13 billion from P60.66 billion.
The HMOs’ total capital stock rose by 4.43 percent from P8.79 billion in 2023 to P9.18 billion last year.
The IC said the 2024 HMO data was obtained from the unaudited interim financial statements submitted by 28 HMOs last year.
Meanwhile, the IC reported that the pre-need industry’s total net income rose by 146.93 percent year-on-year, from P2.09 billion in 2023 to P5.15 billion posted last year.
“The increase was driven by the 68.04 percent spike in the total income earned from investments in trust funds and a 120.23 percent surge in other income,” Regalado said.
The figures were drawn from the unaudited interim financial statements submitted by 16 pre-need companies.
The pre-need sector’s total assets likewise grew by 8.12 percent, from P152.34 billion in 2023 to P164.71 billion last year.
However, the industry’s total premium income slightly contracted by 0.38 percent to P22.64 billion from P22.73 a year ago.
The IC said that only eight out of 17 companies reported an increase in premiums collected.
The number of pre-need plans sold by the sector also contracted by 6.61 percent, from 749,154 plans in 2023 to 699,621 plans last year.
Life or memorial plans remained to be the best-selling products, accounting for 99.88 percent of the total plans sold.
The industry’s net worth grew 20.54 percent year-on-year to P27.98 billion in 2024 from P23.22 billion.
