Health maintenance organisations (HMOs) operating in the Philippines recorded substantial financial gains during the third quarter of 2025 (Q3 2025), with the sector’s net income surging to PHP 2.44 billion compared to PHP 800.9 million in the corresponding period of the prior year, according to the Insurance Commission (IC).
The tripling of profitability signals a period of expansion within the HMO market, driven by increases in membership enrolment and premium collection alongside operational cost management within the sector. Insurance Commissioner Reynaldo A. Regalado commented: “The HMO industry delivered a commendable performance this quarter, as majority of the companies demonstrated stronger profitability and wider market reach. This underscores the industry’s continued reliability in supporting Filipinos’ healthcare needs.”
HMO industry revenue expanded at a rate of 22.59% year-over-year, reaching PHP 73.12 billion from PHP 59.65 billion in Q3 2024. The primary source of this revenue stream came from membership fee collections, which totalled PHP 71.13 billion and represented approximately 98% of total industry revenues.
On the expense side, the sector incurred PHP 70.63 billion in total costs, up from the prior year’s PHP 58.85 billion. Of this amount, healthcare benefits and claims payouts accounted for PHP 54.96 billion, reflecting the core operational function of HMO providers in the Philippines.
The differential between revenue and expense growth suggests improving operational leverage within the industry, although claims management remains the largest cost driver for HMO operators.
The HMO sector’s asset base grew at a faster pace than revenues, expanding 27.59% to PHP 96.81 billion from PHP 75.87 billion. Within this total, invested assets reached PHP 18.54 billion, indicating capital deployment in various asset classes by HMO entities.
Corresponding liability increases totalled PHP 19.89 billion, moving the overall liability position to PHP 84.09 billion. The IC attributed this liability growth to elevated claims reserves and other provisions maintained by HMO operators.
Equity capital for the sector stood at PHP 12.72 billion, reflecting year-over-year growth of 8.94%. A reclassification of capital stock accounts, which declined from PHP 8.93 billion to PHP 6.86 billion, occurred in accordance with regulatory guidance under IC Circular Letter No. 2025-11 regarding surplus account treatment.
Regalado commented: “Collectively, these developments reflect the sustained growth and strengthened financial position of the HMO industry – providing a promising foundation for further innovation, more effective regulation, and improved delivery of accessible and reliable healthcare.”
Beyond the HMO sector, the insurance industry – comprising life insurance carriers, non-life underwriters, and mutual benefit associations (MBAs) – accumulated total premiums of PHP 372.08 billion during Q3 2025. This represented a 13.25% increase from the prior year comparable period.
Within this broader market, life insurance products generated PHP 299.45 billion in premiums, up 13.77%, while non-life carriers collected PHP 60.07 billion, up 13.07%. Variable life insurance products and traditional policies both drove growth, with increases of 16.0% and 9.7%, respectively.
The insurance industry’s consolidated asset base reached PHP 2.62 trillion, while invested assets expanded to PHP 2.32 trillion. Total net worth across the sector climbed 8.49% to PHP 525.97 billion.
