Here’s a shocking truth: while many struggle with rising healthcare costs, one of Ireland’s largest health insurers, Laya Healthcare, saw its profits skyrocket to €19.02 million last year—more than double the previous year’s figure. But here’s where it gets controversial: Is this surge in profits a sign of financial success, or does it highlight deeper issues in the healthcare system? Let’s dive in.
Newly filed accounts reveal that Laya Healthcare’s pre-tax profits jumped by a staggering 108%, climbing from €9.13 million in 2023 to €19.02 million in 2024. This leap came on the heels of a modest 2.5% revenue increase, from €100.85 million to €103.39 million. And this is the part most people miss: Despite these soaring profits, Laya imposed not one, but two premium price hikes on its customers last year, leaving many wondering if the benefits are truly reaching policyholders.
In October 2024, premiums rose by an average of 6.5%, with the company citing increased demand for healthcare services and rising costs as the justification. This followed a 7% hike in April 2024, and the trend continued into 2025 with two more increases in October and April. Just last month, prices rose again by an average of 4.5%, with Laya blaming higher demand for private and high-tech healthcare, as well as advancements in medical technology.
Interestingly, the company’s 2024 financial report sidesteps mention of these price increases. Instead, it attributes the profits to factors like Laya’s growing market share in Ireland. Membership grew by 3%, from 696,000 in 2023 to over 717,000 in 2024, and the company expanded its Health and Wellness services, offering more products to both corporate and individual members.
Here’s a bold question: Are these price hikes necessary to sustain growth, or are they exploiting a system where consumers have limited alternatives? Let’s hear your thoughts in the comments.
Last year also marked the first full year of Laya’s ownership by French giant Axa, following its €650 million acquisition from AIG subsidiary Corebridge Financial in October 2023. Profits in 2023 had been dented by a €15.1 million bill in transactional costs related to the sale, which didn’t recur in 2024.
Meanwhile, Laya’s workforce grew by 43 employees, from 664 to 707, with staff costs rising from €44.74 million to €46.44 million. The company’s post-tax profits reached €14.8 million after a €4.2 million corporation tax charge, and accumulated profits hit €67.26 million by December 2024. Cash funds also increased, totaling €111.09 million, including €38.59 million in cash balances and €72.5 million in restricted cash held for the underwriter.
Managing Director Dermot Oliver O’Connor, who took the helm in January 2024, praised the year’s performance, stating, “2024 was a year of strong performance and strategic investment for Laya Healthcare. Our financial strength allows us to meet the growing healthcare needs of our 717,000 members, ensuring faster access to care and better medical outcomes.”
However, O’Connor also noted that when adjusted for the 2023 transactional costs, net profit after tax actually fell by 35%, reflecting investments in expanding access and clinical excellence. These investments include growing the Laya Health & Wellbeing Clinic network and enhancing digital and diagnostic services. New clinics in Cork and Swords created over 50 jobs, offering members urgent care within 60 minutes and diagnostic scans—including MRI, CT, X-ray, and Dexa—within five days, with results in just two.
In 2024, Laya treated nearly 95,000 urgent care cases and conducted over 25,000 diagnostic tests across its clinics, while its CareOnCall service provided more than 138,000 online GP consultations. O’Connor emphasized, “Our focus remains clear: to deliver better health outcomes, faster access, and genuine value for our members.”
Final thought-provoking question: As Laya’s profits soar, are policyholders truly benefiting, or is this a case of corporate gain at the expense of public health? Share your perspective below.