Anthem Reiterates Cigna Acquisition in Q2 Results

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Anthem, Inc. (NYSE: ANTM) today announced that second quarter 2016 net income was $780.6 million, or $2.91 per share. These results included net negative adjustment items of $0.42 per share. Net income in the second quarter of 2015 was $859.1 million, or $3.13 per share, which included net positive adjustment items of $0.03 per share.

Excluding the items noted in each period, adjusted net income was $3.33 per share in the second quarter of 2016, an increase of 7.4 percent compared with adjusted net income of $3.10 per share in the prior year quarter (refer to GAAP reconciliation table for a reconciliation to the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles, or “GAAP”).

“Our second quarter results reflect the continued growth and diversification of our company. Our commitment to the pending Cigna acquisition remains as strong as ever and we believe this acquisition will further advance affordability and quality for our customers,” said Joseph Swedish, president and chief executive officer.

“Our second quarter 2016 earnings were in line with our expectations and reflected contributions from both of our business segments and an ongoing commitment to administrative expense efficiency,” said John Gallina, executive vice president and chief financial officer.

Highlights of Anthem’s Second Quarter 2016 Results:

  • Net income was $2.91 per share, including net negative adjustment items of $0.42 per share. Adjusted net income was $3.33 per share.
  • Medical enrollment has increased by approximately 1.2 million members in 2016, or 3.0 percent, totaling approximately 39.8 million members as of June 30, 2016.
  • Company now expects medical enrollment to grow by 1.0 – 1.2 million members for full year 2016.
  • Full year 2016 GAAP net income is expected to be greater than $9.34 per share. Full year adjusted net income is expected to be greater than $10.80 per share.
  • Third quarter 2016 dividend of $0.65 per share declared to shareholders.

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