WellPoint Inc., parent of Hamden-based Anthem Blue Cross in Connecticut, said Wednesday a drop in expenses helped its first-quarter net income rise nearly 6 percent, even as it spent more than $700 million buying back shares, and the health insurer raised its 2011 earnings forecast, The Associated Press reports.
The largest publicly traded health insurer based on enrollment earned $926.6 million, or $2.44 per share, in the three months that ended March 31. That’s up from $876.8 million, or $1.96 per share, a year earlier, when the insurer had 67 million more shares.
Total revenue fell slightly to $14.89 billion as premiums, the largest portion of WellPoint’s revenue, slipped 1.6 percent. Adjusted earnings, which exclude $36 million in investment gains, were $2.35 per share.
The performance beat analyst expectations. Analysts polled by FactSet forecast a profit of $1.89 per share on $14.65 billion in revenue.
The Indianapolis company operates Blue Cross Blue Shield plans in 14 states, including California, New York and Ohio.
