Earnings rocket at Anthem
Anthem, Indianapolis, last week reported a 67% jump in earnings in the quarter ended June 30, thanks largely to its acquisition of Trigon Healthcare last year. Net income reached $177.3 million, or $1.25 per share, up from $106.2 million, or $1.01 per share, a year earlier. Revenue climbed 43% to $4.1 billion as enrollment rose 41% to 11.7 million members. Without Richmond, Va.-based Trigon, Anthem's revenue and membership both would have risen 10%.
Aetna sees 28% increase
Second-quarter net income at Aetna, Hartford, Conn., rose 28% to $138.4 million, or 87 cents per share, as the insurer controlled medical costs and stemmed once-declining membership in an ongoing turnaround. Operating profits hit $1.28 per share. Revenue fell 12% to $4.46 billion due to a 10% drop in enrollment during the year, to 13 million members. Compared to the first three months of 2003, however, Aetna's enrollment remained virtually flat. The company boosted its 2003 earnings projection to between $5.55 and $5.70 per share, up from its earlier outlook of $4.75 to $4.90.
Profits rise 73% at Coventry
Coventry Health Care, Bethesda, Md., reported a 73% increase in second-quarter profits and cited higher membership and premiums. Net income reached $63.4 million, or $1.05 per share, compared with $36.6 million, or 60 cents per share, in the year-ago quarter. Operating revenue rose 23% to $1.1 billion as enrollment climbed 12% to 2.15 million members. Coventry said earlier this month that it plans to acquire 160,000-member Altius Health Plans, South Jordan, Utah, in a transaction expected to close in the third quarter.
Humana has 53% jump
Humana, Louisville, Ky., said its profits jumped 53% in the second quarter, thanks to strong growth in its commercial plans. Net income for the three months ended June 30 was $69.3 million, or 43 cents per share, compared with $45.4 million, or 27 cents per share, a year earlier. Excluding a gain on a venture capital investment, Humana earned 37 cents per share. Revenue for the quarter rose 7% to $3.03 billion, while membership increased 1.1% to 6.64 million. Humana has been reducing its participation in Medicare to focus on the more profitable large-employer and individual insurance markets.