Insurer Anthem’s Q2 profit swells, helped by drop in claims

Anthem’s second-quarter profit doubled to nearly $2.3 billion, as a pandemic-induced drop in claims and a new business pushed the Blue CrossBlue Shield insurer’s earnings past expectations.

But the nation’s secondlargest insurer left its 2020 earnings forecast unchanged, following a pattern established by its competitors. Insurers haven’t touched their guidance despite big quarterly earnings growth because they aren’t sure what lies ahead.

The COVID-19 pandemic shut down most of the economy in the second quarter, which meant fewer surgery bills or other big claims. But companies expect at least some of those postponed procedures to take place later this year.

Anthem said Wednesday that its adjusted earnings jumped to $9.20 per share in the quarter that ended June 30. Operating revenue, which excludes investment gains, climbed 16% to $29.18 billion. That was lighter than Wall Street’s expectations.

Analysts expected, on average, earnings of $8.77 per share on $29.43 billion in revenue, according to Zacks Investment Research.

Indianapolis-based Anthem Inc. covers more than 42 million people in several states, including big markets like New York and California. It also started a pharmacy benefits management business called IngenioRx, with help from CVS Health Corp.

That new business injected a $304-million operating gain into the insurer’s secondquarter performance. (AP)