Oscar Health, a New York-based insurance startup, has posted its first-ever profits and plans to expand to several more states next year.
Oscar received over $300 million in premium revenue in the first quarter of 2018, three times higher than the same time last year, as well as a net profit of $7.4 million.
Oscar was founded in 2012 and launched with $727 million in venture capital backing. However, its past financial results have been a disappointment, with more than $200 million in losses in 2016 alone. The company appeared to stem the bleeding in 2017, reporting a $57 million loss in the first half of the year.
The company currently operates in six states, including Texas and New York, and has enrolled over 250,000 members in 2018, up from 100,000 last year.
Administrative costs were also down with a medical loss ratio of 70%, 25% lower than last year and 50% less than 2016.
The company also previously projected that it would generate over $1 billion in gross premium revenue this year and said this goal remains on track.
"Oscar entered 2018 with unprecedented momentum after strong membership growth across new and existing markets, and our first quarter results affirm that our unique business model is working," the startup's CEO and co-founder Mario Schlosser said in a statement.
The positive financial results are on the heels of news that Oscar is planning to sell individual plans in Arizona and at least three other markets next year, as reported by Bloomberg.
"These results strengthen our confidence in the Oscar business model," Schlosser added, "and give Oscar the momentum to expand again into new individual and small group markets in 2019."