Anthem 3Q Profit Falls, Revenue Rises
October 28 2020 - 6:50AM
Dow Jones News
By Dave Sebastian
Anthem Inc. said its profit for the September quarter fell as
expenses grew, and revenue rose due to higher premiums.
The health insurer Wednesday posted net income of $222 million,
or 87 cents a share, compared with $1.18 billion, or $4.55 a share,
in the year-ago period. Net negative adjustment items were $3.33 a
share. Adjusted earnings were $4.20 a share.
Analysts polled by FactSet were expecting earnings of $3.85 a
share, or $4.12 a share on an adjusted basis.
The medical-loss ratio, the share of premiums the insurer pays
out in claims, was 86.8%. Analysts were expecting 87%. The ratio
decreased from 87.2% in the year-ago period due to the deferral of
health care amid the Covid-19 pandemic.
Revenue rose to 16.8% to $31.16 billion, driven by higher
premium revenue due to growth in Medicaid and Medicare,
pharmacy-product revenue related to the launch of IngenioRx and the
return of the health insurance tax in 2020. Analysts were looking
for $29.86 billion.
Expenses grew 22.2% to $30.77 billion.
The company had 42.6 million members as of Sept. 30, up 172,000
from June 30. Members in the company's government business grew
453,000 due to Medicaid and Medicare Advantage. The company's
commercial and specialty business enrollment fell 281,000.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 28, 2020 06:35 ET (10:35 GMT)
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