Anthem (ANTM) has reported a 43.66 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $1,009.90 million, or $3.73 a share in the quarter, compared with $703 million, or $2.63 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,265.40 million, or $4.68 a share compared with $925.10 million or $3.46 a share, a year ago.
Revenue during the quarter grew 11.03 percent to $22,525.90 million from $20,288.50 million in the previous year period. Net premium earned for the quarter increased 10.33 percent or $1,962.40 million to $20,951.30 million.
Total expenses move up Benefits, losses and expenses for the quarter were at $21,010.90 million, or 100.28 percent of premium earned from $18,976.50 million or 99.93 percent of premium earned in the last year period. Operating income for the quarter was $1,515 million, compared with $1,312 million in the previous year period.
For financial year 2017, Anthem forecasts revenue to be in the range of $88 million to $89 million. The company forecasts diluted earnings per share to be $10.37. The company forecasts diluted earnings per share to be $11.60 on adjusted basis.
Net investment income was at $207.20 million for the quarter, up 21.10 percent or $36.10 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 3.98 percent or $52.20 million to $1,363.20 million. The company has booked a loss on investments of $0.80 million in the quarter compared with a loss of $192 million for the previous year period.
"Our first quarter 2017 earnings represent a strong start to the year as membership and operating revenue came in above our expectations. The value proposition we bring to the marketplace is clearly resonating with consumers as we are committed to improving the quality and affordability of healthcare for our customers," said Joseph Swedish, president and chief executive officer.
Operating cash flow improves significantly Anthem has generated cash of $2,688.20 million from operating activities during the quarter, up 97.69 percent or $1,328.40 million, when compared with the last year period.
The company has spent $1,227 million cash to meet investing activities during the quarter as against cash outgo of $1,391 million in the last year period.
Cash flow from financing activities was $1,234.30 million for the quarter as against cash outgo of $408.70 million in the last year period.
Cash and cash equivalents stood at $6,772.40 million as on Mar. 31, 2017, up 304.08 percent or $5,096.40 million from $1,676 million on Mar. 31, 2016.
Assets outpace liabilities growth
Total assets increased 7.96 percent or $5,084.80 million to $68,943.50 million on Mar. 31, 2017. On the other hand, total liabilities were at $42,851.60 million as on Mar. 31, 2017, up 6.30 percent or $2,540 million from year-ago.
Return on assets stood at 1.81 percent in the quarter, up 0.41 from 1.39 percent in the last year period. At the same time, return on equity was at 3.87 percent in the quarter, up 0.89 from 2.99 percent in the last year period.
Investments were almost stable over the past one year at $22,662 million on Mar. 31, 2017. Meanwhile, yield on investments went up 16 basis points to 0.91 percent in the quarter.
Net premiums and other receivables increased 15.50 percent or $774.60 million over the year to $5,773 million on Mar. 31, 2017.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $10,308 million as on Mar. 31, 2017, up 26.85 percent or $2,182 million from year-ago.
Total debt was at $17,142.70 million as on Mar. 31, 2017, up 8.47 percent or $1,339 million from year-ago. Shareholders equity stood at $26,091.90 million as on Mar. 31, 2017, up 10.81 percent or $2,544.80 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.66 percent in the quarter from 0.67 percent in the last year period.
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