Higher revenue from insurance premiums and a larger federal insurance business fueled double-digit profit growth at insurer Anthem in the third quarter of 2018.
The Indianapolis-based company reported a 3.1 percent increase in premium revenue to $21 billion, while overall revenue jumped to $23.3 billion. Net income rose 28.5 percent to $960 million, or $3.62 a share, in the three months through September.
Anthem’s overall customer base shrank 1.9 percent to 39 million, driven by a 59 percent drop in individual membership. That was eased by the addition of 267,000 Medicare customers, an 18 percent increase year-over-year, and revenue from Anthem’s government business rose 15 percent to $13.8 billion.
The insurer now expects its 2018 earnings to climb above $15.60 per share, a result of “strong operating performance” in the quarter, according to Chief Executive Officer Gail Boudreaux. The company is “focused on advancing our consumer, clinical, and digital capabilities,” Boudreaux said in a statement.
Anthem’s stock fell slightly to $263.94 in New York pre-market trading.
