Anthem, the nation's largest operator of Blue Cross and Blue Shield plans with 10.5 million members, said its net income rose 47% in the second quarter ended June 30 to $106.2 million, or $1.01 per share, from $72.4 million, or 70 cents per share, in the year-ago quarter. Excluding one-time items and investment losses, second-quarter income was $104.5 million, or 99 cents per share, a penny above analysts' consensus estimate. Revenue climbed 13% to $3.96 billion. The results don't include Trigon Healthcare, Richmond, Va., which Anthem acquired for $4.2 billion last week. Trigon reported second-quarter net income of $29.8 million, or 80 cents per share, on revenue of $816 million. The purchase is expected to dilute Anthem's profits by about 5 cents per share this year; still, the company raised its full-year earnings projection by about 10 cents to between $3.95 and $4 per share. Anthem's medical costs rose 13% and its premiums 14% over the year-earlier period, reducing its medical-loss ratio to 83.6% from 85.2%. Administrative costs consumed 19.2% of operating revenue. -- by Laura B. Benko
Anthem's profit climbs with premium increase
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