A St. Louis-based health insurer saw a massive earnings jump in the first quarter of 2018 as it looks to close its acquisition of another insurance company.
Centene's first-quarter revenues increased 13% to $13.2 billion compared to the first quarter of last year. Net earnings reached $340 million in the first three months of 2018, up from $139 million during the same period last year.
The company posted diluted earnings of $1.91 per share, compared to $0.79 for the same time frame last year. The insurer's reported earnings beat analyst estimates of $1.88 per share, according to Reuters.
Additionally, Centene reported a 6% growth in managed care membership (684,000 new members) which now totals 12.8 million.
Health insurers have been off to a strong financial start in 2018 despite a rocky exchange market and a lack of federal-cost sharing subsidies. UnitedHealth recently reported a 13.3% increase in first-quarter revenue over last year, relying on a boost from Medicare Advantage plans.
However, Centene revised its full-year revenue estimate to range of $58.2 billion to $59 billion, down from a previous estimate of $60.6 billion to $61.4 billion, due to a delay in its acquisition of Fidelis.
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The $3.75 billion buyout of Fidelis, a New York insurance company, was announced in September and is expected to boost Centene's Medicaid market in the state.
The New York Department of Health and Department of Financial Services both approved the acquisition Monday, and final regulatory approval is up to state Attorney General Eric Schneiderman. Centene's revised forecast estimate also reflected a $340 million contribution to the state of New York that is needed for approval.
Despite the headache and downgraded earnings estimate, Michael F. Neidorff, Centene chairman and CEO, said in a conference call that he was encouraged by the regulatory progress being made.