REUTERS: Anthem Inc reported a better-than-expected quarterly profit on Wednesday as it benefited from higher sales of its government-backed health plans, prompting the health insurer to raise its full-year profit forecast.
The company, which earlier this year launched pharmacy benefits business IngenioRx, forecast adjusted 2019 earnings of more than US$19.40 per share, up from its prior view of more thanUS$19.30.Operating revenue from its government business, which sells Medicare and Medicaid health plans, rose 14per cent to US$15.96 billion.
The company said its benefit expense ratio — the percentage of premiums paid for medical services — worsened to 87.2per cent from 84.8per cent a year earlier. Analysts on average expected 86.59per cent, according to IBES data from Refinitiv. A lower benefit expense ratio is better for health insurers.
Net income rose to US$1.18 billion, or US$4.55 per share, in the third quarter ended Sept. 30 from US$960 million, or US$3.62 per share, a year earlier. Excluding items, the company earned US$4.87 per share, ahead of the average analyst estimate of US$4.82 per share.Total operating revenue rose 15per cent to US$26.44 billion, beating estimates of US$25.88 billion.