The Indianapolis-based insurer acheived nearly $1 billion in net income during Q3, along with an operating revenue of $23 billion.
Anthem Inc. added another strong performing quarter to its record in 2018, with almost $1 billion in net income and positive enrollment growth, according to its Q3 earnings report released Wednesday morning.
Coupled with a 29% year-over-year growth in net income, the Indianapolis-based insurer posted an operating revenue of $23 billion, a benefit expense ratio of 84.8%, and distributed cash dividends totalling $195 million.
Anthem attributes its positive quarterly numbers to premium increases, the return of the health insurance tax, and growth in the Medicare market.
The Q3 earnings report was a welcome show of strength for the company as it continues to deal with the legal controversy surrounding its emergency room coverage policy, which denies payment for visits that are later deemed non-emergent.
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C-Suite Perspective:
"Our third quarter 2018 results reflect solid operating performance and ongoing positive momentum across our businesses, and I am confident that we are entering 2019 in a position of strength," Gail Boudreaux, CEO of Anthem, said in a statement. "We have made significant progress towards improving execution and are focused on advancing our consumer, clinical, and digital capabilities. We remain committed to accelerating growth and will continue to invest in innovative, effective, and scalable healthcare solutions designed to improve the quality and total cost of care for our members."
In light of the optimism for the insurer's performance in recent quarters, the company has raised its year-end guidance for adjusted net earnings to be greater than $15.60 per share.
ADDITIONAL ANTHEM Q3 EARNINGS REPORT HIGHLIGHTS:
- In Q3, Anthem posted an operating cash flow of $607 million, an increase of $65 million compared to Q2.
- Despite the quarterly enrollment growth, Anthem's medical enrollment is down 753,000 members year-over-year, due to a reduced footprint in the individual ACA marketplace.
- Local group enrollment grew by 91,000 lives, while Medicare enrollment expanded by 27,000 lives.
For complete financial information, review Anthem's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
KEY TAKEAWAYS
Anthem recorded a net income of $970 million in Q3, up 29% year-over-year.
Medical enrollment rose slightly by 5,000 lives, with Anthem maintaining total membership at 39.5 million people.
CEO Gail Boudreaux welcomed the earnings report, adding that the insurer is entering 2019 in "a position of strength."