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    Anthem Reports First Quarter 2022 Results, Reflecting Strong Momentum Across All Divisions

    4/20/22 6:00:00 AM ET
    $ANTM
    Medical Specialities
    Health Care
    Get the next $ANTM alert in real time by email
    • First quarter GAAP net income was $7.39 per share, including net negative adjustment items of $0.86 per share. Adjusted net income was $8.25* per share.
    • Operating revenue grew by 18.0% over the prior year quarter to $37.9 billion.
    • Operating gain grew by 13.2% over the prior year quarter to $2.4 billion.
    • Medical enrollment increased by 3.3 million members year-over-year and 1.4 million members sequentially to 46.8 million members.
    • Second quarter 2022 dividend of $1.28 per share declared to shareholders.

    Anthem, Inc. (NYSE:ANTM) reported first quarter 2022 results reflecting strong financial performance, including double-digit top and bottom line growth.

    "Our strong momentum across all our businesses is evidence that our transformation to become a lifetime, trusted health partner continues to drive our growth and accelerate our capabilities focused on whole person health," said Gail K. Boudreaux, President and CEO. "The shared commitment of our more than 98,000 associates to our purpose to improve the health of humanity, is both profound and powerful, and inspires a culture of performance that remains focused on customers and communities we serve."

    The Company now expects GAAP net income to be greater than $26.43 per share, including approximately $1.97 per share of net unfavorable items. The Company now expects full-year adjusted net income to be greater than $28.40 per share, based on stronger than expected first quarter results.

    *Refer to GAAP reconciliation tables.

    CONSOLIDATED HIGHLIGHTS

    Earnings Per Share: GAAP net income was $7.39 per share in the first quarter, including net negative adjustment items of $0.86 per share. Adjusted net income was $8.25* per share, up 17.7% from $7.01 in the same period a year ago.

    *Please refer to the GAAP reconciliation tables.

    Membership: Medical enrollment totaled approximately 46.8 million members as of March 31, 2022, an increase of 3.3 million, or 7.5 percent from the prior year quarter. Government Business enrollment increased by 2.1 million lives compared to the prior year quarter, primarily driven by organic growth in the Medicaid business, aided by the suspension of eligibility recertification efforts in our markets, the acquisitions of MMM and Paramount Advantage, the launch of HealthyBlue in North Carolina, and organic growth in Medicare Advantage. Commercial & Specialty Business enrollment increased by 1.1 million year over year primarily driven by strong sales in both fee-based and risk-based businesses.

    During the first quarter of 2022, medical enrollment increased by 1.4 million lives driven by organic growth in our Commercial fee-based business, the acquisition of Paramount Advantage's Medicaid members in Ohio, and growth in Individual Medicare Advantage enrollment.

    Operating Revenue: Operating revenue was $37.9 billion in the first quarter of 2022, an increase of $5.8 billion, or 18.0 percent, from the prior year quarter. The increase was driven by higher premium revenue due to membership growth in Medicaid, the acquisitions of MMM and Paramount, growth in Medicare Advantage and Commercial risk-based membership, and premium rate increases to cover overall cost trends. The increase was further attributable to growth in pharmacy product revenue within IngenioRx.

    Benefit Expense Ratio: The benefit expense ratio was 86.1 percent in the first quarter of 2022, an increase of 50 basis points versus the prior year quarter. The increase was primarily driven by the continued shift in mix of business, as Anthem has grown Government Business, which has a higher benefit expense ratio, faster than the Commercial & Specialty risk business.

    Medical claims reserves established at December 31, 2021, developed in line with the Company's expectations as of the first quarter of 2022.

    Days in Claims Payable: Days in Claims Payable was 46.9 days as of March 31, 2022, an increase of 1.7 days from December 31, 2021 and unchanged compared to March 31, 2021.

    SG&A Expense Ratio: The SG&A expense ratio was 11.5 percent in the first quarter of 2022, a decrease of 70 basis points from 12.2 percent in the first quarter of 2021. The decrease was primarily driven by operating expense leverage associated with growth in operating revenue, partially offset by increased spend to support growth.

    Operating Cash Flow: Operating cash flow was approximately $2.5 billion, or 1.4 times net income in the first quarter of 2022, an increase of $36 million as compared to the prior year quarter. The year-on-year increase was driven by an increase in net income, partially offset by the impact of working capital changes.

    Share Repurchase Program: During the first quarter of 2022, the Company repurchased 1.2 million shares of its common stock for $545 million, at a weighted average price of $453.32. As of March 31, 2022, the Company had approximately $3.6 billion of Board-approved share repurchase authorization remaining.

    Cash Dividend: During the first quarter of 2022, the Company paid a quarterly dividend of $1.28 per share, representing a distribution of cash totaling $309 million.

    On April 19, 2022, the Audit Committee of the Company's Board of Directors declared a second quarter 2022 dividend to shareholders of $1.28 per share. The second quarter dividend is payable on June 24, 2022, to shareholders of record at the close of business on June 10, 2022.

    Investment Portfolio & Capital Position: During the first quarter of 2022, the Company recorded net losses of $151 million. During the first quarter of 2021, the Company recorded net losses of $4 million. These amounts are excluded from adjusted earnings per share.

    As of March 31, 2022, the Company's net unrealized loss position in the investment portfolio was $755 million, consisting primarily of fixed maturity securities. As of March 31, 2022 cash and investments at the parent company totaled approximately $1.4 billion.

    REPORTABLE SEGMENTS

    Anthem, Inc. has four reportable segments: Commercial & Specialty Business (comprised of Individual, Group risk-based, Group fee-based, and BlueCard businesses); Government Business (comprised of the Medicaid, Medicare, and Federal Health Products & Services businesses); IngenioRx; and Other (comprised of the Diversified Business Group and corporate expenses not allocated to our other reportable segments).

     

     

     

     

     

     

     

     

     

     

    Anthem, Inc.

     

     

    Reportable Segment Highlights

     

     

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

    (In millions)

    Three Months Ended March 31

     

     

     

     

    2022

     

    2021

     

    Change

     

     

     

    Operating Revenue

     

     

     

     

     

     

     

     

    Commercial & Specialty Business

    $10,269

     

    $9,491

     

    8.2 %

     

     

     

    Government Business

    23,758

     

    19,283

     

    23.2 %

     

     

     

    IngenioRx

    6,683

     

    5,862

     

    14.0 %

     

     

     

    Other

    3,221

     

    2,370

     

    35.9 %

     

     

     

    Eliminations

    (6,045)

     

    (4,908)

     

    23.2 %

     

     

     

    Total Operating Revenue1

    $37,886

     

    $32,098

     

    18.0 %

     

     

     

     

     

     

     

     

     

     

     

     

    Operating Gain

     

     

     

     

     

     

     

     

    Commercial & Specialty Business

    $1,082

     

    $1,268

     

    (14.7) %

     

     

     

    Government Business

    789

     

    478

     

    65.1 %

     

     

     

    IngenioRx

    398

     

    407

     

    (2.2) %

     

     

     

    Other

    178

     

    8

     

    NM

     

     

     

    Total Operating Gain1

    $2,447

     

    $2,161

     

    13.2 %

     

     

     

     

     

     

     

     

     

     

     

     

    Operating Margin

     

     

     

     

     

     

     

     

    Commercial & Specialty Business

    10.5 %

     

    13.4 %

     

    (290) bp

     

     

     

    Government Business

    3.3 %

     

    2.5 %

     

    80 bp

     

     

     

    IngenioRx

    6.0 %

     

    6.9 %

     

    (90) bp

     

     

     

    Total Operating Margin1

    6.5 %

     

    6.7 %

     

    (20) bp

     

     

     

     

     

     

     

     

     

     

     

    1.

    See "Basis of Presentation."

    2.

    "NM" = calculation not meaningful.

    Commercial & Specialty Business: Operating gain in the Commercial & Specialty Business segment totaled $1,082 million in the first quarter of 2022, a decrease of $186 million from $1,268 million in the first quarter of 2021. The decrease was primarily driven by the net unfavorable effect of COVID and increased spend to support growth and innovation. These impacts were partially offset by the positive contribution from growth in risk-based and fee-based membership.

    Government Business: Operating gain in the Government Business segment was $789 million in the first quarter of 2022, an increase of $311 million from $478 million in the first quarter of 2021. The increase was primarily attributable to the acquisition of MMM, membership growth in Medicaid, improved risk revenue in Medicare, and out-of-period items in Medicaid. These impacts were partially offset by increased spend in support of growth.

    IngenioRx: Operating gain was $398 million in the first quarter of 2022, a decrease of $9 million from $407 million in the first quarter of 2021. The decrease was primarily driven by the non-recurrence of a favorable out-of-period adjustment in the first quarter of 2021, partially offset by the impact of higher prescription volume resulting from growth in integrated medical and pharmacy members.

    Other: The Company reported an operating gain of $178 million in the Other segment for the first quarter of 2022, an increase of $170 million from $8 million in the prior year quarter. The increase was driven by improved performance in the Diversified Business Group's Affiliated and Unaffiliated earnings and the acquisition of myNEXUS in April 2021. This increase in operating gain was further driven by changes in unallocated corporate costs year-over-year.

    Basis of Presentation

    1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and selling, general and administrative expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.

    2. Operating margin is defined as operating gain divided by operating revenue.

    Conference Call and Webcast

    Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time ("EDT") to discuss the company's first quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

    888-947-9963 (Domestic)

    800-813-5525 (Domestic Replay)

    312-470-0178 (International)

    203-369-3346 (International Replay)

    The access code for today's conference call is 3972058. The replay will be available from 11:30 a.m. EDT today, until the end of the day on May 20, 2022. The call will also be available through a live webcast at www.antheminc.com under the "Investors" link. A webcast replay will be available following the call.

    About Anthem, Inc.

    Anthem is a leading health company dedicated to improving lives and communities, and making healthcare simpler. Through its affiliated companies, Anthem serves approximately 118 million people, including nearly 47 million within its family of health plans. Delivering health beyond healthcare, Anthem is expanding from being a partner in health benefits to a lifetime, trusted health partner. For more information, please visit www.antheminc.com or follow @AnthemInc on Twitter.

    Anthem, Inc.

    Membership Summary

    (Unaudited and in Thousands)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Change from

    Medical Membership

    March 31,

    2022

     

    March 31,

    2021

     

    December 31,

    2021

     

    March 31,

    2021

     

    December 31,

    2021

    Commercial & Specialty Business

     

     

     

     

     

     

     

     

     

    Individual

    818

     

    731

     

    759

     

    11.9

    %

     

    7.8

    %

    Group Risk-Based

    4,028

     

    3,837

     

    4,006

     

    5.0

    %

     

    0.5

    %

    Commercial Risk-Based

    4,846

     

    4,568

     

    4,765

     

    6.1

    %

     

    1.7

    %

    BlueCard®

    6,370

     

    6,166

     

    6,178

     

    3.3

    %

     

    3.1

    %

    Group Fee-Based

    20,148

     

    19,515

     

    19,395

     

    3.2

    %

     

    3.9

    %

    Commercial Fee-Based

    26,518

     

    25,681

     

    25,573

     

    3.3

    %

     

    3.7

    %

    Total Commercial & Specialty Business

    31,364

     

    30,249

     

    30,338

     

    3.7

    %

     

    3.4

    %

    Government Business

     

     

     

     

     

     

     

     

     

    Medicare Advantage

    1,921

     

    1,538

     

    1,859

     

    24.9

    %

     

    3.3

    %

    Medicare Supplement

    939

     

    930

     

    952

     

    1.0

    %

     

    (1.4

    ) %

    Total Medicare

    2,860

     

    2,468

     

    2,811

     

    15.9

    %

     

    1.7

    %

    Medicaid

    10,919

     

    9,172

     

    10,600

     

    19.0

    %

     

    3.0

    %

    Federal Employees Health Benefits

    1,632

     

    1,632

     

    1,625

     

    —

    %

     

    0.4

    %

    Total Government Business

    15,411

     

    13,272

     

    15,036

     

    16.1

    %

     

    2.5

    %

    Total Medical Membership

    46,775

     

    43,521

     

    45,374

     

    7.5

    %

     

    3.1

    %

    Other Membership

     

     

     

     

     

     

     

     

     

    Life and Disability Members

    4,679

     

    4,766

     

    4,782

     

    (1.8

    ) %

     

    (2.2

    ) %

    Dental Members

    6,649

     

    6,599

     

    6,674

     

    0.8

    %

     

    (0.4

    ) %

    Dental Administration Members

    1,588

     

    1,488

     

    1,491

     

    6.7

    %

     

    6.5

    %

    Vision Members

    9,211

     

    7,798

     

    8,031

     

    18.1

    %

     

    14.7

    %

    Medicare Part D Standalone Members

    279

     

    450

     

    438

     

    (38.0

    ) %

     

    (36.3

    ) %

    Anthem, Inc.

    Consolidated Statements of Income

    (Unaudited)

     

     

     

     

     

     

     

    (In millions, except per share data)

     

    Three Months Ended

    March 31

     

     

     

     

     

    2022

     

     

     

    2021

     

     

    Change

    Revenues

     

     

     

     

     

     

    Premiums

     

    $

    32,785

     

     

    $

    27,676

     

     

    18.5

    %

    Product revenue

     

     

    3,301

     

     

     

    2,737

     

     

    20.6

    %

    Administrative fees and other revenue

     

     

    1,800

     

     

     

    1,685

     

     

    6.8

    %

    Total operating revenue

     

     

    37,886

     

     

     

    32,098

     

     

    18.0

    %

    Net investment income

     

     

    360

     

     

     

    291

     

     

    23.7

    %

    Net losses on financial instruments

     

     

    (151

    )

     

     

    (4

    )

     

    NM

     

     

     

     

     

     

     

     

    Total revenues

     

     

    38,095

     

     

     

    32,385

     

     

    17.6

    %

     

     

     

     

     

     

     

    Expenses

     

     

     

     

     

     

    Benefit expense

     

     

    28,215

     

     

     

    23,699

     

     

    19.1

    %

    Cost of products sold

     

     

    2,883

     

     

     

    2,313

     

     

    24.6

    %

    Selling, general and administrative expense

     

     

    4,341

     

     

     

    3,925

     

     

    10.6

    %

    Interest expense

     

     

    201

     

     

     

    192

     

     

    4.7

    %

    Amortization of other intangible assets

     

     

    129

     

     

     

    80

     

     

    61.3

    %

     

     

     

     

     

     

     

    Total expenses

     

     

    35,769

     

     

     

    30,209

     

     

    18.4

    %

     

     

     

     

     

     

     

    Income before income tax expense

     

     

    2,326

     

     

     

    2,176

     

     

    6.9

    %

     

     

     

     

     

     

     

    Income tax expense

     

     

    531

     

     

     

    509

     

     

    4.3

    %

     

     

     

     

     

     

     

    Net income

     

     

    1,795

     

     

     

    1,667

     

     

    7.7

    %

     

     

     

     

     

     

     

    Net loss/(income) attributable to noncontrolling interests

     

     

    10

     

     

     

    (2

    )

     

    NM

     

     

     

     

     

     

     

     

    Shareholders' net income

     

    $

    1,805

     

     

    $

    1,665

     

     

    8.4

    %

     

     

     

     

     

     

     

    Shareholders' net income per diluted share

     

    $

    7.39

     

     

    $

    6.71

     

     

    10.1

    %

     

     

     

     

     

     

     

    Diluted shares

     

     

    244.4

     

     

     

    248.2

     

     

    (1.5

    ) %

     

     

     

     

     

     

     

    Benefit expense as a percentage of premiums

     

     

    86.1

    %

     

     

    85.6

    %

     

    50 bp

    Selling, general and administrative expense as a percentage of total operating revenue

     

     

    11.5

    %

     

     

    12.2

    %

     

    (70) bp

    Income before income tax expense as a percentage of total revenue

     

     

    6.1

    %

     

     

    6.7

    %

     

    (60) bp

     

    "NM" = calculation not meaningful

    Anthem, Inc.

    Consolidated Balance Sheets

     

    (In millions)

    March 31,

    2022

     

    December 31,

    2021

    Assets

    (Unaudited)

     

     

    Current assets:

     

     

     

    Cash and cash equivalents

    $

    6,161

     

     

    $

    4,880

     

    Fixed maturity securities

     

    26,219

     

     

     

    26,267

     

    Equity securities, current

     

    1,662

     

     

     

    1,881

     

    Premium receivables

     

    7,349

     

     

     

    5,681

     

    Self-funded receivables

     

    3,979

     

     

     

    4,010

     

    Other receivables

     

    3,334

     

     

     

    3,749

     

    Other current assets

     

    5,193

     

     

     

    4,654

     

    Total current assets

     

    53,897

     

     

     

    51,122

     

     

     

     

     

    Long-term investments:

     

     

     

    Fixed maturity securities

     

    596

     

     

     

    632

     

    Other invested assets

     

    5,365

     

     

     

    5,225

     

    Property and equipment, net

     

    3,986

     

     

     

    3,919

     

    Goodwill

     

    24,251

     

     

     

    24,228

     

    Other intangible assets

     

    10,588

     

     

     

    10,615

     

    Other noncurrent assets

     

    1,803

     

     

     

    1,719

     

    Total assets

    $

    100,486

     

     

    $

    97,460

     

     

     

     

     

    Liabilities and equity

     

     

     

    Liabilities

     

     

     

    Current liabilities:

     

     

     

    Medical claims payable

    $

    14,713

     

     

    $

    13,518

     

    Other policyholder liabilities

     

    5,396

     

     

     

    5,521

     

    Unearned income

     

    1,210

     

     

     

    1,153

     

    Accounts payable and accrued expenses

     

    5,493

     

     

     

    4,970

     

    Short-term borrowings

     

    275

     

     

     

    275

     

    Current portion of long-term debt

     

    3,097

     

     

     

    1,599

     

    Other current liabilities

     

    9,549

     

     

     

    7,849

     

    Total current liabilities

     

    39,733

     

     

     

    34,885

     

     

     

     

     

    Long-term debt, less current portion

     

    19,883

     

     

     

    21,157

     

    Reserves for future policy benefits

     

    811

     

     

     

    802

     

    Deferred tax liabilities, net

     

    2,349

     

     

     

    2,805

     

    Other noncurrent liabilities

     

    1,679

     

     

     

    1,683

     

    Total liabilities

     

    64,455

     

     

     

    61,332

     

     

     

     

     

    Shareholders' equity

     

     

     

    Common stock

     

    2

     

     

     

    2

     

    Additional paid-in capital

     

    9,151

     

     

     

    9,148

     

    Retained earnings

     

    28,058

     

     

     

    27,088

     

    Accumulated other comprehensive loss

     

    (1,236

    )

     

     

    (178

    )

    Total shareholders' equity

     

    35,975

     

     

     

    36,060

     

    Noncontrolling interests

     

    56

     

     

     

    68

     

    Total equity

     

    36,031

     

     

     

    36,128

     

    Total liabilities and equity

    $

    100,486

     

     

    $

    97,460

     

    Anthem, Inc.

    Consolidated Statements of Cash Flows

    (Unaudited)

     

     

     

     

    (In millions)

    Three Months Ended March 31

     

     

    2022

     

     

     

    2021

     

    Operating activities

     

     

     

    Net income

    $

    1,795

     

     

    $

    1,667

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

    Net losses on financial instruments

     

    151

     

     

     

    4

     

    Equity in net earnings of other invested assets

     

    (153

    )

     

     

    (108

    )

    Depreciation and amortization

     

    358

     

     

     

    282

     

    Deferred income taxes

     

    (92

    )

     

     

    31

     

    Share-based compensation

     

    50

     

     

     

    64

     

    Changes in operating assets and liabilities:

     

     

     

    Receivables, net

     

    (1,348

    )

     

     

    (1,258

    )

    Other invested assets

     

    7

     

     

     

    (20

    )

    Other assets

     

    (353

    )

     

     

    (288

    )

    Policy liabilities

     

    1,075

     

     

     

    1,455

     

    Unearned income

     

    57

     

     

     

    (119

    )

    Accounts payable and other liabilities

     

    428

     

     

     

    358

     

    Income taxes

     

    568

     

     

     

    438

     

    Other, net

     

    (2

    )

     

     

    (1

    )

    Net cash provided by operating activities

     

    2,541

     

     

     

    2,505

     

     

     

     

     

    Investing activities

     

     

     

    Purchases of investments

     

    (5,050

    )

     

     

    (6,978

    )

    Proceeds from sale of investments

     

    3,047

     

     

     

    4,650

     

    Maturities, calls and redemptions from investments

     

    1,209

     

     

     

    998

     

    Changes in securities lending collateral

     

    (441

    )

     

     

    (731

    )

    Purchases of subsidiaries, net of cash acquired

     

    (61

    )

     

     

    (27

    )

    Purchases of property and equipment

     

    (254

    )

     

     

    (204

    )

    Other, net

     

    (28

    )

     

     

    (15

    )

    Net cash used in investing activities

     

    (1,578

    )

     

     

    (2,307

    )

     

     

     

     

    Financing activities

     

     

     

    Net proceeds from (repayments of) commercial paper borrowings

     

    225

     

     

     

    (250

    )

    Net (repayments of) proceeds from long-term borrowings

     

    (14

    )

     

     

    3,462

     

    Changes in securities lending payable

     

    441

     

     

     

    731

     

    Repurchase and retirement of common stock

     

    (545

    )

     

     

    (447

    )

    Cash dividends

     

    (309

    )

     

     

    (277

    )

    Proceeds from issuance of common stock under employee stock plans

     

    76

     

     

     

    89

     

    Taxes paid through withholding of common stock under employee stock plans

     

    (86

    )

     

     

    (91

    )

    Other, net

     

    534

     

     

     

    171

     

    Net cash provided by financing activities

     

    322

     

     

     

    3,388

     

     

     

     

     

    Effect of foreign exchange rates on cash and cash equivalents

     

    (4

    )

     

     

    (1

    )

     

     

     

     

    Change in cash and cash equivalents

     

    1,281

     

     

     

    3,585

     

    Cash and cash equivalents at beginning of period

     

    4,880

     

     

     

    5,741

     

     

     

     

     

    Cash and cash equivalents at end of period

    $

    6,161

     

     

    $

    9,326

     

    Anthem, Inc.

    Reconciliation of Medical Claims Payable

     

     

    Three Months Ended

    March 31

     

    Years Ended December 31

     

     

    2022

     

     

     

    2021

     

     

     

    2021

     

     

     

    2020

     

     

     

    2019

     

    (In millions)

    (Unaudited)

     

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gross medical claims payable, beginning of period

    $

    13,282

     

     

    $

    11,135

     

     

    $

    11,135

     

     

    $

    8,647

     

     

    $

    7,266

     

    Ceded medical claims payable, beginning of period

     

    (21

    )

     

     

    (46

    )

     

     

    (46

    )

     

     

    (33

    )

     

     

    (34

    )

    Net medical claims payable, beginning of period

     

    13,261

     

     

     

    11,089

     

     

     

    11,089

     

     

     

    8,614

     

     

     

    7,232

     

     

     

     

     

     

     

     

     

     

     

    Business combinations and purchase adjustments

     

    3

     

     

     

    —

     

     

     

    420

     

     

     

    339

     

     

     

    —

     

     

     

     

     

     

     

     

     

     

     

    Net incurred medical claims:

     

     

     

     

     

     

     

     

     

    Current year

     

    28,064

     

     

     

    24,215

     

     

     

    100,440

     

     

     

    85,094

     

     

     

    78,695

     

    Prior years redundancies(1)

     

    (933

    )

     

     

    (1,488

    )

     

     

    (1,703

    )

     

     

    (637

    )

     

     

    (500

    )

    Total net incurred medical claims

     

    27,131

     

     

     

    22,727

     

     

     

    98,737

     

     

     

    84,457

     

     

     

    78,195

     

     

     

     

     

     

     

     

     

     

     

    Net payments attributable to:

     

     

     

     

     

     

     

     

     

    Current year medical claims

     

    17,116

     

     

     

    15,031

     

     

     

    88,156

     

     

     

    74,629

     

     

     

    70,294

     

    Prior years medical claims

     

    8,826

     

     

     

    6,748

     

     

     

    8,829

     

     

     

    7,692

     

     

     

    6,519

     

    Total net payments

     

    25,942

     

     

     

    21,779

     

     

     

    96,985

     

     

     

    82,321

     

     

     

    76,813

     

     

     

     

     

     

     

     

     

     

     

    Net medical claims payable, end of period

     

    14,453

     

     

     

    12,037

     

     

     

    13,261

     

     

     

    11,089

     

     

     

    8,614

     

    Ceded medical claims payable, end of period

     

    17

     

     

     

    39

     

     

     

    21

     

     

     

    46

     

     

     

    33

     

    Gross medical claims payable, end of period

    $

    14,470

     

     

    $

    12,076

     

     

    $

    13,282

     

     

    $

    11,135

     

     

    $

    8,647

     

     

     

     

     

     

     

     

     

     

     

    Current year medical claims paid as a percentage of current year net incurred medical claims

     

    61.0

    %

     

     

    62.1

    %

     

     

    87.8

    %

     

     

    87.7

    %

     

     

    89.3

    %

     

     

     

     

     

     

     

     

     

     

    Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year

     

    7.6

    %

     

     

    15.5

    %

     

     

    18.1

    %

     

     

    8.0

    %

     

     

    7.4

    %

     

     

     

     

     

     

     

     

     

     

    Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

     

    0.9

    %

     

     

    1.8

    %

     

     

    2.0

    %

     

     

    0.8

    %

     

     

    0.7

    %

     

     

     

     

     

     

     

     

     

     

    (1) Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for

    amounts less than originally estimated.

    Anthem, Inc.

    GAAP Reconciliation

    (Unaudited)

    Anthem, Inc. has referenced "Adjusted Net Income" and "Adjusted Net Income Per Share," which are non-GAAP measures, in this document. These non-GAAP measures are not intended to be alternatives to any measure calculated in accordance with GAAP. In addition to these non-GAAP measures, references are made to the measures "Operating Revenue" and "Operating Gain." Each of these measures is provided to further aid investors in understanding and analyzing the company's core operating results and comparing Anthem, Inc.'s financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is reported below. Prior amounts may be grouped differently to conform to current presentation.

     

     

    Three Months Ended

    March 31

     

     

    (In millions, except per share data)

     

     

    2022

     

     

     

    2021

     

     

    Change

    Shareholders' net income

     

    $

    1,805

     

     

    $

    1,665

     

     

    8.4

    %

    Add / (Subtract):

     

     

     

     

     

     

    Net losses on financial instruments

     

     

    151

     

     

     

    4

     

     

     

    Amortization of other intangible assets

     

     

    129

     

     

     

    80

     

     

     

    Transaction and integration related costs

     

     

    9

     

     

     

    9

     

     

     

    Litigation expenses

     

     

    1

     

     

     

    6

     

     

     

    Tax impact of non-GAAP adjustments

     

     

    (78

    )

     

     

    (25

    )

     

     

    Net adjustment items

     

     

    212

     

     

     

    74

     

     

     

    Adjusted shareholders' net income

     

    $

    2,017

     

     

    $

    1,739

     

     

    16.0

    %

     

     

     

     

     

     

     

    Shareholders' net income per diluted share

     

    $

    7.39

     

     

    $

    6.71

     

     

    10.1

    %

    Add / (Subtract):

     

     

     

     

     

     

    Net losses on financial instruments

     

     

    0.62

     

     

     

    0.02

     

     

     

    Amortization of other intangible assets

     

     

    0.53

     

     

     

    0.32

     

     

     

    Transaction and integration related costs

     

     

    0.04

     

     

     

    0.04

     

     

     

    Litigation expenses

     

     

    —

     

     

     

    0.02

     

     

     

    Tax impact of non-GAAP adjustments

     

     

    (0.32

    )

     

     

    (0.10

    )

     

     

    Rounding impact

     

     

    (0.01

    )

     

     

    —

     

     

     

    Net adjustment items

     

     

    0.86

     

     

     

    0.30

     

     

     

    Adjusted shareholders' net income per diluted share

     

    $

    8.25

     

     

    $

    7.01

     

     

    17.7

    %

     

     

     

     

     

     

     

     

     

    Full Year 2022 Outlook

     

     

    Shareholders' net income per diluted share

     

    Greater than $26.43

     

     

    Add / (Subtract):

     

     

     

     

    Net losses on financial instruments

     

    $

    0.61

     

     

     

    Transaction and integration related costs

     

    $

    0.04

     

     

     

    Amortization of other intangible assets

     

    Approximately $2.11

     

     

    Tax impact of non-GAAP adjustments

     

    Approximately $(0.79)

     

     

    Net adjustment items

     

    Approximately $1.97

     

     

    Adjusted shareholders' net income per diluted share

     

    Greater than $28.40

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

    March 31

     

     

    (In millions)

     

     

    2022

     

     

     

    2021

     

     

    Change

    Income before income tax expense

     

    $

    2,326

     

     

    $

    2,176

     

     

    6.9

    %

    Net investment income

     

     

    (360

    )

     

     

    (291

    )

     

     

    Net losses on financial instruments

     

     

    151

     

     

     

    4

     

     

     

    Interest expense

     

     

    201

     

     

     

    192

     

     

     

    Amortization of other intangible assets

     

     

    129

     

     

     

    80

     

     

     

    Reportable segments operating gain

     

    $

    2,447

     

     

    $

    2,161

     

     

    13.2

    %

    Forward-Looking Statements

    This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as "expect," "feel," "believe," "will," "may," "should," "anticipate," "intend," "estimate," "project," "forecast," "plan" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward- looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent otherwise required by federal securities laws, we do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof. These risks and uncertainties include, but are not limited to: the impact of large scale medical emergencies, such as public health epidemics and pandemics, including COVID-19, and catastrophes; trends in healthcare costs and utilization rates; our ability to secure sufficient premium rates, including regulatory approval for and implementation of such rates; the impact of federal, state and international law and regulation, including ongoing changes in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; our ability to contract with providers on cost-effective and competitive terms; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; reduced enrollment; the impact of a cyber-attack or other cyber security breach resulting in unauthorized disclosure of member or employee sensitive or confidential information, including the impact and outcome of any investigations, inquiries, claims and litigation related thereto; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; risks and uncertainties related to our pharmacy benefit management ("PBM") business, including non-compliance by any party with the PBM services agreement between us and CaremarkPCS Health, L.L.C.; medical malpractice or professional liability claims or other risks related to healthcare and PBM services provided by our subsidiaries; general risks associated with mergers, acquisitions, joint ventures and strategic alliances; changes in tax laws; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; failure to effectively maintain and modernize our information systems; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20220419006123/en/

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      CAMBRIDGE, United Kingdom, Aug. 09, 2021 (GLOBE NEWSWIRE) -- Dante Labs, a global leader in genomics and precision medicine, announced today the appointment of Mark Morgan as a board member. Mark is the SVP of Market Access for GRAIL, which has developed a highly innovative multi-cancer, early detection blood test. "We are excited to welcome Mark Morgan to the Dante Labs Board," said Dante Labs CEO Andrea Riposati, "Mark is a rockstar in healthcare. His deep experience with health plans, coupled with market access expertise in both biopharma and diagnostics will be invaluable to Dante Labs as we continue to build on our global success and expansion in the United States." Mr. Morgan state

      8/9/21 7:39:23 AM ET
      $AMGN
      $ANTM
      $ILMN
      Biotechnology: Biological Products (No Diagnostic Substances)
      Health Care
      Medical Specialities
    • Anthem, Inc. Completes Acquisition of Integra Managed Care

      Anthem, Inc. (NYSE:ANTM) today announced the completion of its acquisition of Integra Managed Care, a Managed Long-Term Care Plan in New York that helps adults with long term care needs and disabilities live safely and independently in their own home. "We're pleased to complete this acquisition and work alongside our new colleagues as we continue to grow our Medicaid business and enhance the healthcare experience for all of our members," said Felicia Norwood, Executive Vice President of Anthem's Government Business Division. "Anthem and Integra's shared commitment to deliver high quality, comprehensive whole-health care across communities throughout New York ensures that our members will c

      5/5/22 7:48:00 AM ET
      $ANTM
      Medical Specialities
      Health Care
    • Anthem Reports First Quarter 2022 Results, Reflecting Strong Momentum Across All Divisions

      First quarter GAAP net income was $7.39 per share, including net negative adjustment items of $0.86 per share. Adjusted net income was $8.25* per share. Operating revenue grew by 18.0% over the prior year quarter to $37.9 billion. Operating gain grew by 13.2% over the prior year quarter to $2.4 billion. Medical enrollment increased by 3.3 million members year-over-year and 1.4 million members sequentially to 46.8 million members. Second quarter 2022 dividend of $1.28 per share declared to shareholders. Anthem, Inc. (NYSE:ANTM) reported first quarter 2022 results reflecting strong financial performance, including double-digit top and bottom line growth. "Our strong momentum a

      4/20/22 6:00:00 AM ET
      $ANTM
      Medical Specialities
      Health Care
    • Anthem to Hold Conference Call and Webcast to Discuss First Quarter Results on April 20, 2022

      Anthem, Inc. (NYSE:ANTM) will release first quarter 2022 financial results on April 20, 2022, at 6:00 a.m. Eastern Daylight Time ("EDT"). Management will review these results and its outlook during a conference call at 8:30 a.m. EDT that same morning. The conference call should be accessed at least 15 minutes prior to its start with the following numbers: 888-947-9963 (Domestic) 800-813-5525 (Domestic Replay) 312-470-0178 (International) 203-369-3346 (International Replay) The access code for the call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT on April 20, 2022 until the end of the day on May 20, 2022. The cal

      4/6/22 4:05:00 PM ET
      $ANTM
      Medical Specialities
      Health Care

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    Large Ownership Changes

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    • SEC Form SC 13G/A filed by Anthem Inc. (Amendment)

      SC 13G/A - Anthem, Inc. (0001156039) (Subject)

      2/9/22 3:24:47 PM ET
      $ANTM
      Medical Specialities
      Health Care
    • SEC Form SC 13G/A filed

      SC 13G/A - Anthem, Inc. (0001156039) (Subject)

      2/10/21 10:30:29 AM ET
      $ANTM
      Medical Specialities
      Health Care