Anthem Reports 1Q 2015 Results
Anthem reported that first quarter 2015 net income was
Anthem said the results included net losses of
In a release on
Excluding the items noted in each period, adjusted net income was
"We are pleased to report a solid start to 2015 and an increase in our earnings outlook for the full year. First quarter results reflect our growing membership base as we continue to focus on improving affordability for our members. We are encouraged with how our strategy is playing out and believe it positions us to capitalize on multiple growth opportunities across our businesses," said
"First quarter results position us well for the remainder of 2015 and highlight another quarter of consistent execution. During the quarter, we continued our capital deployment strategy, closing the
CONSOLIDATED HIGHLIGHTS
Membership: Medical enrollment totaled approximately 38.5 million members at
Operating Revenue: Operating revenue was nearly
Benefit Expense Ratio: The benefit expense ratio was 80.2 percent in the first quarter of 2015, a decrease of 250 basis points from 82.7 percent in the prior year quarter. The decline was largely driven by an improvement in the Local and Individual businesses predominantly due to the timing of medical cost experience, improved medical cost performance in certain markets in the
Medical claims reserves established at
Medical Cost Trend: For the full year 2015, the Company continues to expect that underlying Local Group medical cost trend will be in the range of 7.0 percent plus or minus 50 basis points.
Days in Claims Payable: Days in Claims Payable (DCP) was 45.7 days as of
SG&A Expense Ratio: The SG&A expense ratio was 16.7 percent in the first quarter of 2015, an increase of 50 basis points from 16.2 percent in the first quarter of 2014. The increase was primarily driven by increased Health Care Reform fees for 2015 and higher administrative costs as a result of strong membership growth during the first quarter of 2015.
Operating Cash Flow: Operating cash flow for the first quarter 2015 was nearly
Share Repurchase Program: During the first quarter of 2015, the Company repurchased nearly 5.7 million shares of its common stock for
Cash Dividend: During the first quarter of 2015, the Company paid a quarterly dividend of
On
Investment Portfolio & Capital Position: During the first quarter of 2015, the Company recorded net realized gains on investments totaling
As of
Discontinued Operations: In late
OUTLOOK
Full Year 2015:
-Net income is now expected to be greater than
-Medical membership is now expected to be in the range of 38,200,000 - 38,400,000. Fully insured membership is expected to be in the range of 14,750,000 - 14,850,000 and self-funded membership is now expected to be in the range of 23,450,000 - 23,550,000.
-Operating revenue is now expected to be approximately
-Benefit expense ratio is now expected to be in the range of 82.9 percent plus or minus 30 basis points.
-SG&A ratio is expected to be in the range of 16.1 percent plus or minus 30 basis points.
-Operating cash flow is expected to be greater than
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