PHILSTAR FILE PHOTOTHE HEALTH maintenance organization (HMO) industry returned to profitability in 2024 amid higher revenues, data from the Insurance Commission (IC) showed.
The sector’s net income stood at P979.8 million as of end-2024, a turnaround from the P4.27-billion net loss in 2023, according to IC data based on the unaudited financial statements submitted by 28 companies.
“This is explained by the higher increase in the sector’s total revenue compared to its total expenses,” Insurance Commissioner Reynaldo A. Regalado said in a statement on Friday.
Total revenues increased by 20.12% to P79.37 billion from P66.08 billion driven mainly by a 18.42% growth in membership fees to P75.62 billion — making up 95.3% of the total.
Meanwhile, total expenses rose by 11.44% to P78.39 billion from P70.35 billion as healthcare benefits and claims paid grew 10.08% to P61.06 billion.
“We also noted from the submissions, that the HMO sector’s total assets, total invested assets, total equity, total capital stock, and total liabilities upswung across the board during the quarter under review,” Mr. Regalado said.
Total assets expanded by 23.85% to P75.13 billion at end-2024 from P60.66 billion.
“The 21.38% increase in cash equivalents, a marked 273.08% rise in deposit to healthcare providers (net), and a 27.51% increase in membership fees receivable (net) contributed to this growth,” the IC said.
Total invested assets, which comprised 23.77% of total assets, increased by 0.92% to P17.86 billion on higher cash equivalents and government securities.
Meanwhile, total liabilities climbed by 26.44% to P63.73 billion amid increases in membership fee and claims reserves.
Total equity rose by 11.14% to P11.4 billion last year from P10.25 billion.
HMOs’ total capital stock went up by 4.43% year on year to P9.18 billion.
PRE-NEED INDUSTRY
Meanwhile, the pre-need industry saw its net income jump by 146.93% last year despite lower plan sales, separate IC data showed.
The sector’s combined net income rose to P5.15 billion in 2024 from P2.09 billion in 2023, IC data from the unaudited financial statements of 16 companies showed.
“The increase was largely driven by the 68.04% spike in the total income earned from investments in trust funds and a 120.23% surge in other income,” Mr. Regalado said.
Meanwhile, premium income inched down by 0.38% to P22.64 billion from P22.73 billion as only eight out of 17 companies reported increases in premiums collected.
Pre-need plans sold decreased by 6.61% to 699,621 in 2024 from 749,154.
This, as sales of life or memorial plans went down by 6.67% to 698,791. This made up 99.88% of the total plans sold by the pre-need sector.
The industry’s combined assets expanded by 8.12% to P164.71 billion on higher investments in trust funds, which made up 84.79% of total assets.
Meanwhile, liabilities rose by 5.89% to P136.73 billion from P129.12 billion.
“Notably, seven out of eight companies that recorded asset growth likewise experienced a rise in liabilities,” the IC said.
The sector’s net worth increased by 20.54% to P27.98 billion from P23.22 billion.
Total capital stock declined by 4.63% year on year to P3.91 billion in 2024 from P4.1 billion the year prior. — AMCS
