Highmark Reports $175M Net Loss for 2025
Highmark posted a $175 million net loss in 2025 as its insurance arm weathered cost pressures that strained the industry nationwide.
The company said full-year revenue reached $32.4 billion, up 11%. Revenues were up across business units, with Highmark Health Plans posting a 12% increase, Allegheny Health Network reporting an 11% increase in revenue and the diversified business unit—which includes United Concordia Dental and its stop-loss business, HM Insurance Group—seeing revenue up 7%.
The insurance division posted a $609 million operating loss in 2025, and executives told reporters during a briefing that the performance of other businesses helped to offset some of that downturn. Allegheny Health Network, the company's provider arm, posted $90 million in operating income, up from $237 million in 2024.
The company said it expects those headwinds to carry through 2026 across the industry, and it has taken steps to adjust pricing and its portfolio to account for the current environment. Daley said the financial sting was felt most acutely in its government programs, a trend that's similarly anticipated to persist.
"By continuing to strategically reposition certain insurance segments, cut administrative expenses and execute other mitigation strategies," Daley said. "We are confident we can improve financial results year over year in 2026 and advance toward our long-term margin and sustainability goals."
There are some bright spots in the insurance division's results, however, he said. For example, among the 10 largest Medicare Advantage plans, Highmark boasted the second-highest number of members in plans with at least four stars, Daley said.
Allegheny Health Network, meanwhile, has seen notable improvements across multiple key categories in 2025, according to Highmark. The health system posted $372 million in net earnings before interest, taxes, depreciation and amortization (EBITDA), an increase of $257 million compared to 2024.
In addition, the system saw a 3% increase in inpatient discharges and observations; a 4% increase in emergency room visits; and a 7% increase in physician visits. It also saw outpatient registrations grow by 5%, according to the financial report.
HM Insurance Group posted a $107 million operating loss as the frequency and severity of high-cost claims rose, Highmark said. United Concordia Dental reported $88 million in operating income.