1、HEALTH INSURER FINANCIAL PULSESummer 2025Health Insurer Financial Pulse Oliver Wyman2Health Insurer Financial PulseWe present the Summer 2025 edition of our Health Insurer Financial Pulse!This edition of Pulse includes the reported annual statutory financial experience for health insurers through 20

2、24,Premium Deficiency Reserves(PDR)trends,highlights from Public Companies Q2 2025 financial statements,and a summary of recent health plan Merger and Acquisition(M&A)activity and valuation trends.Our aim is to keep you abreast of key market trends and dynamics that impact health insurer financial r

3、esults and profitability.We hope you enjoy the newsletter and find it informative.Please look for our next edition in Fall of 2025.2024 statutory financials Individual,Group,Medicare,and Medicaid markets margin deteriorationThe market-wide pre-tax margins decreased in 2024 to(-0.3%)and were negative

4、 for the first time in recent memory with increased industry loss ratios in all lines of business compared to 2023.2022-2024 Premium Deficiency Reserves(PDR)increasesTotal amount held in PDRs more than doubled from 2022($2.2 billion)to 2024($4.4 billion),with an approximately equal increase of aroun

5、d$1.1 billion each year.Non-Public Blues had the greatest change,tripling their total PDR amount,while public companies approximately doubled theirs and other companies had the smallest proportional increase over the period.Q2 2025 large public companies financial performance challenges continueWe r

6、eviewed large public companies profitability for their insured business and noted that reported profit margins for Q2 2025 were 0.5%lower than Q2 2024 on average,with the reduction driven by Elevance and UnitedHealthcare increased loss ratios.Continuing profitability headwinds in 2025 remain a chall