Anthem, Inc (ANTM) has reported a 5.65 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $617.80 million, or $2.30 a share in the quarter, compared with $654.80 million, or $2.43 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $656.80 million, or $2.45 a share compared with $735 million or $2.73 a share, a year ago.
Revenue during the quarter grew 7.55 percent to $21,403.90 million from $19,901.60 million in the previous year period. Net premium earned for the quarter increased 6.88 percent or $1,273.10 million to $19,786.10 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $20,267.40 million, or 102.43 percent of premium earned from $18,772 million or 101.40 percent of premium earned in the last year period. Operating income for the quarter was $1,136.50 million, compared with $1,129.60 million in the previous year period. For financial year 2016, Anthem, Inc forecasts diluted earnings per share to be $9.28. The company forecasts diluted earnings per share to be $10.80 on adjusted basis.
Net investment income was at $200.90 million for the quarter, up 24.63 percent or $39.70 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 6.43 percent or $80.40 million to $1,330 million. The company has recorded a gain on investments of $77.80 million in the quarter compared with a loss of $31 million for the previous year period.
"Our third quarter results reflected our focus on improving affordability for our members and capitalizing on growth opportunities across our businesses. The strong membership growth across the majority of our lines of businesses this year is further testament to the value proposition we bring to the marketplace," said Joseph Swedish, president and chief executive officer.
Operating cash flow declines
Anthem, Inc has generated cash of $2,929.80 million from operating activities during the nine month period, down 7.49 percent or $237.10 million, when compared with the last year period. The company has spent $1,184.80 million cash to meet investing activities during the nine month period as against cash outgo of $1,782.20 million in the last year period.
The company has spent $1,314.40 million cash to carry out financing activities during the nine month period as against cash outgo of $1,985 million in the last year period.
Cash and cash equivalents stood at $2,546 million as on Sep. 30, 2016, up 64.49 percent or $998.20 million from $1,547.80 million on Sep. 30, 2015.
Assets outpace liabilities growth
Total assets increased 3.31 percent or $2,064.30 million to $64,399.90 million on Sep. 30, 2016. On the other hand, total liabilities were at $39,655.70 million as on Sep. 30, 2016, up 1.42 percent or $556.20 million from year-ago.
Return on assets stood at 1.23 percent in the quarter, down 0.09 from 1.31 percent in the last year period. At the same time, return on equity was at 2.50 percent in the quarter, down 0.32 from 2.82 percent in the last year period.
Investments move up marginally
Investments stood at $22,439 million as on Sep. 30, 2016, up 2.61 percent or $569.70 million from year-ago. Meanwhile, yield on investments went up 16 basis points to 0.90 percent in the quarter. Total debt was at $15,610.20 million as on Sep. 30, 2016, down 3.99 percent or $649.40 million from year-ago. Shareholders equity stood at $24,744.20 million as on Sep. 30, 2016, up 6.49 percent or $1,508.10 million from year-ago. As a result, debt to equity ratio went down 7 basis points to 0.63 percent in the quarter from 0.70 percent in the last year period.
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