Anthem beats estimates as Q4 adjusted net income jumps 55%

Morgan Haefner - Print  | 

Indianapolis-based Anthem reported an adjusted net income of $473.2 million in the fourth quarter of this year, a year-over-year increase of 54.7 percent from $305.8 million. 

The insurer reported a 7.6 percent increase in total revenue in Q4 2016 to $21.7 billion, compared to $20.1 billion in Q4 2015. Anthem attributed the growth in revenue to higher premiums and enrollment in its Medicaid and employer self-funded businesses. For full-year 2016 total revenue, Anthem recorded $84.9 billion, up 7.2 percent from its full-year 2015 total revenue of $79.4 billion. 

"We are pleased to end 2016 with better than expected enrollment and operating cash flow as we enter 2017 with a strong balance sheet," said John Gallina, executive vice president and CFO of Anthem.

The insurer is awaiting a district court's decision on its proposed $54 billion acquisition of Bloomfield, Conn.-based Cigna. The payer reported an operating loss of $66.1 million in Q4 2016 — roughly double the $33.8 million operating loss the company witnessed in Q4 2015. Officials attribute the increase in operating costs to expenses related to is potential Cigna acquisition.    

Anthem's total medical enrollment was approximately 39.9 million members as of Dec. 31, 2016. The number marks a 3.4 percent year-over-year increase up from 38.6 million members in 2015. The insurer saw the greatest enrollment gains in its Medicaid business, adding 613,000 members for a year-over-year increase of 10.4 percent.  

The company projects an adjusted net income of more than $11.50 per share and operating revenue in the range of $86.5 billion to $87.5 billion for full-year 2017.  

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