Anthem reported a net income of $1.1 billion in the second quarter of 2018 even as enrollment dipped.
The company's net income increased 23% compared to the same quarter last year, thanks in part to a better-than-expected benefit expense ratio of 83.4% down from 86.1% the previous year. The company's benefit expenses dipped 1.1% in the second quarter compared to the previous year, while premiums rose 2.1% to $21.1 billion, according to Wednesday's financial filing.
Earnings per share came in at $4.25 for the quarter and the company increased its full-year earnings outlook to $15.40 per share.
The insurer lost 129,000 members during the second quarter, and total membership dropped by 888,000 over compared to the previous year. Much of that was attributed to a reduced footprint in the ACA marketplace this year since Medicare enrollment grew by 254,000.
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Anthem's government business led the way with $13.5 billion in operating revenues, up 14% from the previous year. Operating gain among government plans increased grew 83.2% to $537.4 million thanks to acquisitions of HealthSun and America's 1st Choice.
"We remain focused on improving fundamental execution across the enterprise and we expect the positive momentum exhibited in the first half of 2018 to persist for the balance of the year," Anthem CEO Gail K. Boudreaux said in a statement.
"We will also continue to invest in capabilities that will enable us to more effectively meet the needs of our customers and seamlessly adapt to the ever-changing healthcare landscape. I’m excited about the growth opportunities we see ahead of us and I’m confident that with our trusted brand and deep local market presence, we are well-positioned to gain share in our markets and deliver quality, affordable healthcare to our members."