In its first quarterly financial statement since its March IPO, health insure-tech company Oscar Health has announced a nearly 30% increase in membership year-over-year (YoY). Mario Schlosser, CEO and Co-Founder of Oscar, said that the first-quarter results show that the company’s model is delivering value to the market, its provider partners and to its members.
- Direct Policy Premiums Up: Total direct policy premiums were $820.8 million in the quarter, up 43.5% YoY, driven primarily by higher membership growth in existing and new states and business mix shifts. Premiums earned in the quarter were up 332.5% YoY, driven both by membership growth and lower quota share cession rates in 2021.
- Consolidated Profit :Oscar’s InsuranceCo Combined Ratio, which is the sum of its Medical Loss Ratio and the InsuranceCo Administrative Expense Ratio, improved 1040 bps YoY to 94.2% reflecting a consolidated profit across the insurance companies. Oscar’s MLR improved 670 bps YoY, driven by the absence of reserve increases that occurred in the quarter ended March 31, 2020 and a modest benefit from favorable prior period development in the quarter ended March 31, 2021.
- Improved Administrative Expense Ratio :The company announced that the InsuranceCo Administrative Expense Ratio improved by 380 bps YoY, driven by operating leverage, scale efficiencies from our tech stack, and the repeal of the health insurer fee.
- Net Loss: Net loss was $87.4 million in the quarter, an improvement of $9.5 million YoY and Adjusted EBITDA loss was $26.3 million, an improvement of $59.9 million YoY.
- Attractive Growth: Mario Schlosser said, “We achieved very attractive first-quarter growth, while simultaneously lowering our medical loss ratio and administrative cost ratio year-over-year. This trend, coupled with the recent launch of +Oscar, positions our company well for continued sustainable growth and improving profitability.”