INDIANAPOLIS (AP) - Growing government business fueled Anthem in the first quarter, as earnings for the nation's second-largest health insurer easily topped Wall Street expectations.
The Blue Cross-Blue Shield insurer said Wednesday that operating revenue from its work for the government, which includes Medicaid and Medicare Advantage coverage, jumped 14 percent and now makes up slightly more than half of its total of $20.31 billion. Operating revenue excludes investment gains.
Net income fell nearly 19 percent to $703 million, as benefits paid, the company's largest expense, grew 10 percent.
Adjusted results of $3.46 per share beat the average analyst expectation for $3.34 per share, according to Zacks investment research.
Analysts also expected revenue of $19.84 billion.
Anthem Inc., based in Indianapolis, runs Blue Cross Blue Shield plans in several states, including California, New York and Ohio.
The insurer also reaffirmed its forecast for 2016 earnings of greater than $10.80 per share.
Analysts expect, on average, $10.91 per share, according to FactSet.
Anthem shares have risen 5.5 percent since the beginning of the year. The stock has decreased almost 3 percent in the last 12 months.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ANTM at http://www.zacks.com/ap/ANTM
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Keywords: Anthem, Earnings Report