(TNS) — Highmark Health’s financial results for the first half of the year paint a picture of an improving performance for its 14-hospital network, even as the struggles of the overall health insurance industry are weighing down its insurance operation.

Allegheny Health Network, Highmark’s hospital network, finished its second consecutive quarter in the black after years of red ink. It reported income from operations of $71.7 million for the six months, which compares to an operational loss of $57.2 million last year.

Specifically, revenue from the hospital network’s operations rose 12% for the period to $2.79 billion as physician visits and hospital admissions rose. “I’m really proud of the AHN team and what they’ve done,” Highmark Health CFO Carl Daly said.

Meanwhile, Highmark Health’s medical insurance plans — like those of rival for-profit CVS Health, UnitedHealth Group, Humana and other big insurers — didn’t do as well.

Operating revenue for Highmark Health Plans rose 12.61% to $12.5 billion for the period, while the operating gain — or the income left after insurance claims and other costs were covered — dropped 80.2% to $60 million. Highmark sells Blue Cross Blue Shield and other health insurance plans.

Health insurers use what happened in the past to predict future expenses, which can be an inexact science. Kate Musler, CFO of Highmark Health Plans, said the insurer anticipated moderation in expense increases or even some improvement in 2025 when compared to 2024, but that didn’t happen.

“In some ways, health insurance is quite simple,” said Musler, who analyzes future financial risk as an actuary. “The hard part is seeing the future.”

Like other big health insurers, Highmark struggled during the six months with higher utilization than anticipated for members with government coverage, officials said.

Highmark subsidiary United Concordia Dental reported operating revenue of $916 million for the six months, an increase of $49 million or 5.65% from a year ago. The operating gain for the unit dropped $4 million to $41 million or 8% from a year ago.

Highmark’s stop-loss insurance business, HM Insurance Group, generated operating revenue of $686 million, an increase of 15.4% from a year ago, while the unit’s operating gain fell 42.42%. Daly attributed the decline in stop-loss operating margin to high-dollar claims.

Overall, Highmark Health on Thursday reported $16.5 billion in revenue, up $1.8 billion from a year ago for a 12.24% increase. Operating gains were down a little over 60% and net income dropped 21%.