The revenue composition maintains a consistent structure, with premiums serving as the primary driver, typically accounting for 78% to 80% of total revenues. Product revenues remain stable between 11% and 13%, while services fluctuate slightly between 8% and 9.5%. A slight shift is observed in late 2024, where premiums reached a period low of 77.06% as product revenues peaked at 13.58%.
Cost Structure and Gross Margin
Medical costs represent the most significant expenditure, historically ranging from 64% to 66% of revenues. However, a period of severe cost escalation occurred throughout 2025, with medical costs peaking at 72.88% in December 2025. This trend led to a corresponding compression of gross profit, which fell from a historical average of approximately 23% to a low of 15.85% in December 2025, before recovering to 21.95% by March 2026.
Operating Performance
Earnings from operations generally remained stable between 7.6% and 9.6% from 2021 through 2024. The operational margin experienced a sharp decline in 2025, coinciding with the rise in medical costs, reaching a nadir of 0.34% in December 2025. Operating costs as a percentage of revenue remained relatively controlled, fluctuating between 12% and 15%, suggesting that the margin erosion was driven by direct medical costs rather than administrative overhead.
Non-Operating Impacts and Net Earnings
Net earnings attributable to common shareholders typically fluctuate between 5% and 6.9%. Two significant anomalies are present: first, a sharp drop to -1.43% in March 2024, which is directly attributable to a one-time loss on the sale of subsidiaries totaling 7.17% of revenues. Second, the systematic decline throughout 2025 resulted in a net margin of nearly zero (0.01%) by December 2025. A strong recovery is evident in early 2026, with net earnings returning to 5.68%.
Taxation and Interest
Interest expenses remain stable as a percentage of revenue, generally staying under 1.1%. The provision for income taxes shows variability, including a tax benefit (positive value) of 0.83% in December 2025, which partially offset the operational losses during that quarter.
The overall financial trend indicates a resilient core business model that faced significant medical cost headwinds in 2025. The subsequent recovery in early 2026 suggests an effective realignment of costs or pricing adjustments to restore historical profitability levels.
