Universal American Corp (UAM) has reported 1,717.86 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $50.90 million, or $0.83 a share in the quarter, compared with $2.80 million, or $0.03 a share for the same period last year. On the other hand, adjusted net loss for the quarter narrowed to $2.90 million, or $0.05 a share from a loss of $12.30 million or $0.15 a share, a year ago. Revenue during the quarter went up marginally by 1.06 percent to $343.40 million from $339.80 million in the previous year period. Net premium earned for the quarter increased 11.97 percent or $36.40 million to $340.60 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $347.40 million, or 102 percent of premium earned from $319.40 million or 105 percent of premium earned in the last year period. Operating loss for the quarter was $4 million, compared with an operating income of $20.40 million in the previous year period. Net investment income was at $1.90 million for the quarter, down 53.66 percent or $2.20 million from year-ago period. The company has booked a loss on investments of $0.10 million in the quarter compared with a gain of $29.80 million for the previous year period.
Richard A. Barasch, Chairman and Chief executive officer, commented, “Universal American has had a positive and productive third quarter and year to date. We sold the remaining businesses that didn’t fit with our core strengths, settled the APS Healthcare litigation and reduced our outstanding share count by 31%. After this activity, including the large stock buybacks, we ended the quarter with more than $100 million of available cash at the parent. Further, our business has become significantly less complex, which will allow us to meaningfully lower our corporate expenses in 2017.
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