HEALTH maintenance organizations’ (HMO) combined net income surged by 131.12% year on year in the first half as they posted higher revenues.
The sector’s net profit went up to P1.47 billion in the first semester from P636.6 million in the same period last year, data from the Insurance Commission showed.
“Despite the big increase in the payout of healthcare benefits, the HMO industry continued its return to profitability due to higher revenues,” the regulator said.
The sector’s total revenues climbed by 21.36% to P47.03 billion in the first six months from P38.754 billion last year.
This was driven mainly by a 25.23% increase in membership fees to P45.79 billion from P36.57 billion.
Meanwhile, HMOs’ total expenses went up by 19.53% year on year to P45.56 billion in the period. This came as total benefits and claims paid out by the industry rose by 19.63% to P36.29 billion.
The industry’s total assets grew by 21.14% to P83.91 billion at end-June from P69.27 billion a year prior.
Of this, P18.23 billion were invested assets, 13.15% lower than the P20.99 billion recorded last year due to the “maturity of cash equivalents, with net decrease of 25.87%, or P2.51 billion, during the first half.”
Meanwhile, total liabilities increased by 23.88% year on year to P72.25 billion in the first six months from P58.32 billion.
Total equity was up by 6.57% to P11.66 billion from P10.94 billion.
INSURERS’ ASSETSMeanwhile, the combined net income and assets of both the life and nonlife insurance sectors also rose in the first half, separate data released by the IC showed.
The life sector’s total net income increased by 4.05% to P20.72 billion driven by the 12.01% growth in premiums collected to P195.05 billion.
Life companies’ new business annual premium equivalent also increased by 11.29% to P37.01 billion.
Their combined assets expanded by 7.74% to P1.995 trillion at end-June from P1.85 trillion a year ago.
Total invested assets climbed by 11.89% to P1.93 trillion. Total net worth also rose by 8.77% to P287.72 billion.
Meanwhile, total liabilities went up by 7.57% to P1.71 trillion.
The sector’s paid-up capital increased by 8.4% to P35.19 billion in the six-month period from P32.36 billion.
For the nonlife insurance sector, its combined net income rose by 2.71% to P5.12 billion in the first six months from P4.98 billion in the same period last year.
This came even as total claims paid out by companies grew by 32.67% year on year to P15.69 billion.
Meanwhile, nonlife insurers’ total premiums earned climbed by 20.63% to P37.08 billion in the first half from P30.74 billion a year ago.
Net premiums written (NPW) grew by 20.48% year on year P39.63 billion.
“As in previous reporting periods, the motor car business remained the leading contributor, accounting for 40.52% of total NPW. It registered a 16.2% increase, equivalent to P2.24 billion, growing from P13.82 billion to P16.06 billion,” the IC said.
Gross premiums written also rose by 9.92% to P65.599 billion in the first half from P59.68 billion a year ago.
The nonlife sector’s total assets went up by 5.72% to P377.21 billion at end-June from P356.8 billion.
Of this, P184.51 billion were invested assets, up by 5.54% from P174.83 billion.
The industry’s combined net worth was at P137.97 billion in the first half, rising by 8.98% year on year from P126.599 billion.
On the other hand, nonlife insurers’ liabilities increased by 3.93% to P239.25 billion from P230.2 billion.
Total paid-up capital went up by 7.77% to P48.47 billion from P44.98 billion. — A.M.C. Sy
