Unlike a number of other publicly traded health insurers that did very well in the second quarter, Universal American Corp., which specializes in Medicare Advantage products, reported an adjusted net loss for the second quarter. Its revenue slid and its medical-loss ratio came in significantly higher than expected. It reported a $91.8 million loss for the quarter.
In the second quarter of 2012, Universal American reported net income of $4.7 million. At 3 p.m. EDT Friday, its share price was $9.99, 8.4% below where it closed Thursday.
Medicare Advantage is Universal American's bread and butter, and the carrier posted revenue in that segment of $394.9 million, well below a projection of $404.5 million made by Raymond James Financial healthcare analyst Michael Baker. Other equity analysts expressed similar disappointment in Universal's Medicare Advantage performance.
In the second quarter of 2012, Universal's Medicare Advantage business posted revenue of $397.3 million.