Anthem 4Q Profit Falls, Revenue Rises
January 27 2021 - 6:49AM
Dow Jones News
By Dave Sebastian
Anthem Inc. said its profit for the fourth quarter fell despite
higher revenue as the return of the health-insurance tax drove
expenses up and non-Covid-19 health-care activity remained lower
during the pandemic.
The health insurer on Wednesday posted net income of $551
million, or $2.19 a share, compared with $934 million, or $3.62 a
share, in the year-ago period.
Adjusted earnings were $2.54 a share. Analysts polled by FactSet
were expecting $2.53 a share.
The medical-loss ratio, the share of premiums the insurer pays
out in claims, was 88.9% for the quarter, compared with 89% in the
prior-year quarter due to lower non-Covid health-care activity
during the pandemic. Analysts were expecting 89.9%.
Revenue rose 16% to $31.82 billion from $27.41 billion, driven
by growth in Medicaid and Medicare, as well as pharmacy-product
revenue related to IngenioRx. Analysts were looking for $30.9
billion.
Expenses grew 19% to $31.21 billion, partly driven by the return
of the health-insurance tax.
The company had about 42.9 million members as of Dec. 31, up
4.7% from the year-ago period.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
January 27, 2021 06:34 ET (11:34 GMT)
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