Philippine HMO industry net income soars 123% in FY 2024

The sector posted a net income of $16.7m.

The Philippines saw a 122.95% year-on-year (YoY) increase in the total net income of the health maintenance organisation (HMO) industry as of 31 December 2024, compared to the previous year, data from the Insurance Commission showed.

The sector posted a net income of $16.7m (₱979.8m) in Q4 2024, reversing a net loss of $072.6m (₱4.27b) in Q4 2023.

Insurance Commissioner Reynaldo A. Regalado attributed the growth to a higher increase in total revenue compared to expenses.

Total revenue rose 20.12% YoY to $1.3b (₱79.37b), driven mainly by an 18.43% YoY increase in membership fees, which accounted for 95.30% of total HMO revenue.

Meanwhile, total expenses grew by 11.44% YoY to $1.0b (₱61.05b), primarily due to a 10.08% YoY increase in healthcare benefit and claims payments.

The industry’s total assets increased by 23.85% YoY to $1.3b (₱75.13b), supported by a 21.38% YoY rise in cash equivalents, a 273.08% YoY increase in deposits to healthcare providers, and a 27.51% YoY growth in membership fees receivable.

Total invested assets, making up 23.77% of total assets, climbed 9.92% YoY to $303.6m (₱17.86b), mainly due to an 88.16% rise in government securities.

Total liabilities increased by 26.44% YoY to $1.1b (₱63.73b), driven by a 77.59% YoY rise in membership fee reserves and a 32.24% YoY increase in claims reserves.

($1.00 = ₱57.56)