Despite explosive growth in revenues and total membership, some of the largest insurtech companies posted losses exceeding a combined $332 million in the first quarter of 2022.
For all of 2021, the three companies posted combined losses topping $570 million.
The Bloomington, Minn.-based company reported a 110 percent boost in revenue year over year, growing to $1.84 billion in 2022. Commercial enrollment grew 117 percent year over year, with 1.04 million total members in 2022. NeueHealth value-based plans saw massive growth year over year, rising 1,667 percent from 30,000 to 530,000 members.
But the company's operating expenses topped $2 billion in the first quarter, leaving the group with $180.6 million in losses.
During its earnings call with investors, the New York City-based company said its biggest insurance priority this year is profitability in 2023.
The company's total revenue increased 163 percent year over year, rising to $972.8 million in 2022. Membership nearly doubled between the fourth quarter of 2021 and the first quarter of 2022, growing from 542,220 in 2021 to 1,073,595 million in 2022.
Operating expenses, however, increased to $1.04 billion from $433 million year over year, leaving the company with net losses of over $77 million. The company's losses did go down though, decreasing from nearly $89 million in the first quarter of 2021.
The Franklin, Tenn.-based insurtech company reported a staggering total revenue increase of 337 percent in the first quarter, rising to $874.4 million in 2022 compared to $200.3 million year over year. Total lives under Clover management in 2022 were 257,442, a 288 percent increase year over year. Operating expenses also rose significantly, growing 201 percent from $319.4 million in the first quarter of 2021 to $961.7 million in 2022.
Despite the extreme growth for the Medicare Advantage plan provider, the company's net loss in the first quarter was $75.3 million, increasing from $48.4 million year over year.