Anthem, Inc. (ANTM) has reported an 103.65 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $368.40 million, or $1.37 a share in the quarter, compared with $180.90 million, or $0.68 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $473.20 million, or $1.76 a share compared with $305.80 million or $1.14 a share, a year ago.
Revenue during the quarter grew 7.56 percent to $21,714.40 million from $20,187.90 million in the previous year period. Net premium earned for the quarter increased 7.42 percent or $1,391.80 million to $20,137.10 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $21,055.80 million, or 104.56 percent of premium earned from $19,813.60 million or 105.70 percent of premium earned in the last year period.
Operating income for the quarter was $658.60 million, compared with $374.30 million in the previous year period.
For fiscal year 2017, Anthem, Inc. projects revenue to be in the range of $86,500 million to $87,500 million. It projects diluted earnings per share to be $11.11. It expects diluted earnings per share to be $11.50 on adjusted basis for the same period.
Net investment income was at $212.60 million for the quarter, up 31.15 percent or $50.50 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 5.64 percent or $71.60 million to $1,342 million. The company has recorded a gain on investments of $16.90 million in the quarter compared with a gain of $2.10 million for the previous year period.
"Our fourth quarter 2016 core earnings and financial metrics tracked well versus our expectations, reflecting the efforts of all of our associates to improve affordability on behalf of our members. We are well positioned for a successful 2017, building off of improved business momentum in the second half of 2016," said Joseph Swedish, president and chief executive officer.
Operating cash flow declines
Anthem, Inc. has generated cash of $3,204.50 million from operating activities during the year, down 22.15 percent or $911.50 million, when compared with the last year.
The company has spent $513.90 million cash to meet investing activities during the year as against cash outgo of $1,151.50 million in the last year.
The company has spent $732.90 million cash to carry out financing activities during the year as against cash outgo of $2,997.40 million in the last year period.
Cash and cash equivalents stood at $4,075.30 million as on Dec. 31, 2016, up 92.82 percent or $1,961.80 million from $2,113.50 million on Dec. 31, 2015.
Assets outpace liabilities growth
Total assets increased 5.45 percent or $3,365.30 million to $65,083.10 million on Dec. 31, 2016. On the other hand, total liabilities were at $39,982.70 million as on Dec. 31, 2016, up 3.38 percent or $1,309 million from year-ago.
Return on assets stood at 0.84 percent in the quarter, up 0.25 from 0.58 percent in the last year period. At the same time, return on equity was at 1.47 percent in the quarter, up 0.68 from 0.79 percent in the last year period.
Investments move up marginally
Investments stood at $21,443.70 million as on Dec. 31, 2016, up 2.06 percent or $432.50 million from year-ago. Meanwhile, yield on investments went up 22 basis points to 0.99 percent in the quarter.
Net premiums and other receivables increased 27.33 percent or $1,258 million over the year to $5,860.80 million on Dec. 31, 2016.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $10,185.50 million as on Dec. 31, 2016, up 2.90 percent or $287.30 million from year-ago.
Total debt was at $15,726.90 million as on Dec. 31, 2016, down 0.87 percent or $137.60 million from year-ago. Shareholders equity stood at $25,100.40 million as on Dec. 31, 2016, up 8.92 percent or $2,056.30 million from year-ago. As a result, debt to equity ratio went down 6 basis points to 0.63 percent in the quarter from 0.69 percent in the last year period.
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