Philippine HMO net income rebounds to $11.2m in H1 2024

Thanks to higher revenues driven by higher membership fees collected. 

The Philippines’ health maintenance organisations (HMO) registered a net income of $11.2m (₱636.6m) in the first half of the year, compared to a loss of $21m (₱1.19b) during the same period last year, data from the Insurance Commission showed.

Despite the increase in benefit payouts, HMOs returned to profitability thanks to higher revenues. Total revenues hit $685m (₱38.7b), up 21% year-on-year compared to $562m (₱31.7b) in 2023.

The IC cited higher membership fees collected behind the growth, totalling $646m (₱36.5b).

The HMO industry also saw a 12.16% growth in its total assets, which amounted to $1.2b (₱69.26b). 

Total invested assets also increased by 6.4% to $376b (₱21.3b), due to the 56.9% increase in cash equivalents. Consequently, total invested assets now account for 29.1% of the HMO industry’s total assets.

Total liabilities increased by 13.3% to $1b (₱58.32b) due to increases in membership fee reserves and claims reserves, with 24.2% and 26.4% growth respectively.

($1 = ₱56.62)