How the 'big 5' payers performed financially in Q4

The five largest U.S. health insurers — Aetna, Anthem, Cigna, Humana and UnitedHealth Group — saw a range of financial results in the fourth quarter of 2016.

1. Aetna reported a Q4 total revenue and operating revenue of $15.7 billion each, up from $15 billion and $15.1 billion in Q4 of fiscal year 2015, respectively. The insurer attributed the increase in total revenue and operating revenue to higher premiums in its healthcare segment. The Hartford, Conn.-based payer saw its net profit drop 57 percent in Q4 2016 to $139 million, down from $321 million during the same period last year. The drop was due to an increase in restructuring costs, including a $330 million pre-tax expense related to its voluntary early retirement program.

2. Indianapolis-based Anthem recorded a 7.6 percent increase in total revenue in Q4 2016 to $21.7 billion, up from $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. The insurer reported an adjusted net income of $473.2 million in Q4 2016, a year-over-year increase of 54.7 percent from $305.8 million in Q4 2015. 

3. Bloomfield, Conn.-based Cigna's total revenue increased 4.4 percent to $9.9 billion in Q4 2016, up from $9.5 billion during the same period last year. Cigna said the increase reflects the continued growth of its commercial business. Cigna reported an adjusted income from operations of $485 million in Q4 2016, down from $486 million for Q4 2015. The insurer said the adjusted income from operations reflected strong results in its commercial healthcare and global supplemental benefits businesses.  

4. Humana recorded a Q4 consolidated revenue of $12.9 billion in 2016, falling 4 percent from $13.4 billion during the same period last year. The Louisville, Ky.-based insurer recorded an adjusted consolidated pretax income of $643 million in Q4 2016, a 42 percent jump from Q4 2015 due to year-over-year improvement in its individual Medicare Advantage business and higher operating earnings in its healthcare services segment. 

5. Minnetonka, Minn.-based UnitedHealth Group reported better-than-expected Q4 2016 revenues of $ 47.5 billion, a year-over-year increase of 9 percent. UnitedHealth attributed its revenue growth to the growing market demand for its product and service offerings. UnitedHealth also recorded Q4 net earnings of $1.9 billion, up 53 percent during the same period last year.

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