WellPoint Inc., parent of Anthem Blue Cross Blue Shield of Connecticut, said today its profit fell 1 percent in the first quarter due mainly to investment losses, and the health insurer narrowed its outlook for the year.
Excluding the investment losses, WellPoint’s earnings topped Wall Street expectations.
WellPoint, the nation’s largest health insurer by enrollment, said it earned $580.4 million, down from $588.1 million. A stock buyback boosted earnings per share to $1.16 from $1.07. Revenue slipped more than 2 percent to $15.14 billion.
The Indianapolis-based company said it lost $228.4 million, or 46 cents per share, on investments in equity securities and fixed-maturity securities.
Excluding the investment losses, the company reported an adjusted profit of $1.62 per share.
Analysts expected a profit of $1.25 per share on $15.57 billion in revenue, according to Thomson Reuters. Analysts typically exclude one-time items like the investment losses.
At 11 a.m., WellPoint traded at $41.94, up 18 cents, or 0.4 percent.
The company also said its 2009 profit outlook was now $5.14 to $5.20 per share. Excluding the investment losses, that represents a range of $5.60 to $5.66 per share, which is narrower than previous guidance of $5.51 to $5.66 per share.
WellPoint also called for $61.2 billion in revenue, down from about $62 billion.
Analysts expected $5.62 per share and $62.22 billion in revenue.
WellPoint’s medical enrollment fell 2.3 percent because of job cuts at its employer customers and an exit from state-sponsored business in Ohio and Connecticut.
WellPoint lost 490,000 members during the quarter, mostly from its local businesses. Individual and senior membership also decreased. Enrollment fell to 34.6 million at the end of the quarter, and that total is expected to slide to about 33.9 million at the end of 2009.
The company operates Blue Cross and Blue Shield plans in 14 states. (AP)
