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Anthem profit beats estimates on deferred care due to COVID-19

Credit: REUTERS/BRENDAN MCDERMID

U.S. health insurer Anthem Inc reported better-than-expected quarterly profit on Wednesday, aided by lower medical costs as people delayed non-essential procedures due to the COVID-19 pandemic.

Adds details on the quarter, estimates

July 29 (Reuters) - U.S. health insurer Anthem Inc ANTM.N reported better-than-expected quarterly profit on Wednesday, aided by lower medical costs as people delayed non-essential procedures due to the COVID-19 pandemic.

Anthem said the decline in costs was primarily driven by the deferral of healthcare utilization due to the COVID-19 pandemic.

Anthem's benefit expense ratio, the share of premiums paid for medical services, improved to 77.9% from 86.7% a year earlier.

Excluding items, Anthem reported a profit of $9.20 per share, beating the average analyst estimate of $8.87 per share, according to Refinitiv IBES data.

Net income rose to $2.28 billion, or $8.91 per share, in the second quarter ended June 30, from $1.14 billion, or $4.36 per share, a year earlier.

Total revenue rose to $29.3 billion from $25.47 billion.

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shinjini Ganguli)

((manojna.kalyani@thomsonreuters.com; +91 80 6182 2700;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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