Philippine HMO net income rebounds to $13.58m in Q3 2024

This is due to a 22.50% rise in total revenue.

The Philippine health maintenance organisation (HMO) industry’s total net income soared by 137.31% in the third quarter to $13.58m (₱800.86m), according to the Insurance Commission. 

This surge was driven by a 22.50% rise in total revenue, despite a 15.75% increase in total expenses. 

The industry’s total revenue climbed to $1b (₱59.65b) from $825.81m (₱48.69b), largely due to a 20.65% increase in membership fees, which comprise 95% of the sector’s revenue. Meanwhile, total expenses rose to $791.55m (₱46.67b), driven by a 14% uptick in healthcare benefits and claims paid. 

Total assets for the industry grew by 18.42% year-on-year, reaching $1.33m (₱75.87m). This growth was fueled by a 16.21% rise in membership fee receivables, a 51.81% increase in cash equivalents, and a 79.75% jump in cash held in banks. 

Additionally, the HMOs' total invested assets, accounting for 27.16% of the industry’s total assets, increased to $349.56m (₱20.61b) from $313.26m (₱18.47b) last year.

This is also due to the rise in cash equivalents and an 87.47% increase in investments in property and equipment.

$1 = ₱58.96