The Health Maintenance Organization (HMO) industry in the Philippines has reported a significant 122.95% year-on-year (YoY) increase in net income for the fiscal year 2024, reaching $16.7 million (₱979.8 million). This marks a remarkable turnaround from a net loss of $72.6 million (₱4.27 billion) recorded in the same period last year, according to data from the Insurance Commission.
Insurance Commissioner Reynaldo A. Regalado attributed the growth to a substantial rise in total revenue outpacing the increase in expenses. The industry’s total revenue for Q4 2024 surged by 20.12% YoY, reaching $1.3 billion (₱79.37 billion). A key driver of this growth was an 18.43% YoY increase in membership fees, which now account for 95.30% of the total HMO revenue.
On the expense side, the industry saw a more modest increase of 11.44% YoY, totaling $1.0 billion (₱61.05 billion). The primary factor behind this rise was a 10.08% YoY jump in healthcare benefit and claims payments.
The industry also experienced growth in assets, with total assets increasing by 23.85% YoY to $1.3 billion (₱75.13 billion). This was driven by a 21.38% YoY increase in cash equivalents, a massive 273.08% YoY jump in deposits to healthcare providers, and a 27.51% rise in membership fees receivable.
Total invested assets, which account for 23.77% of the industry’s assets, rose by 9.92% YoY to $303.6 million (₱17.86 billion), primarily due to an 88.16% increase in government securities.
However, total liabilities also grew, rising by 26.44% YoY to $1.1 billion (₱63.73 billion). This was mainly attributed to a 77.59% increase in membership fee reserves and a 32.24% rise in claims reserves.
The exchange rate for the period was ₱57.56 to $1.00.
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