Health insurance company Vhi paid out €1.68bn in claims in 2023, up 18% on the previous year.
Vhi said the increase in volume and costs of claims paid was not matched by a corresponding increase in premium income.
This resulted in a net deficit of €43.4m, compared to a net surplus of €34.3m in 2022.
The company recorded €1.68bn premium for its private health insurance business, an increase of 3.2% on the previous year.
It said this was due to strong growth in membership which increased by over 37,000.
Vhi recorded €29.9m in income on Vhi's other insurance products, up from €27.5m in 2022.
These products include travel, dental, life and international health insurance.
In total, Vhi had close to 1.7 million insurance members, comprising of over 1.2 million for private medical insurance and just under 480,000 for other insurance services.
MultiTrip, Vhi's annual travel insurance membership now stands at 354,698 members up 8.4% on the previous year.
In terms of price hikes, Vhi said it was necessary to increase premiums in order to continue to meet the healthcare needs of members, as claims volumes and the cost of delivering healthcare increase.
"This premium increase followed net price reductions from 2020 to 2022 as well as return of value to members exceeding €450 million during the pandemic," Vhi said in a statement.
Brian Walsh, Group CEO of Vhi said its members accessed significantly more healthcare than in any other year in our history, with claims accelerating at a rate not experienced before.
"This brought challenges as Vhi experienced a financial deficit in 2023," he said.
"The unprecedented rise in claims volumes combined with high levels of cost inflation is being addressed through continued focus on efficiency and value for money, aligning pricing with demand for and cost of healthcare, and continuous investment in superior healthcare and technology capability," he added.
