Connecticut Insurance

Wellpoint Inc., USA health insurance with most customers, said profit fell 25 percent, the first quarterly decline in three years, higher than expected claims Medicare - backed plans for the elderly.

Net income in the first quarter decreased to $ 588.1 million or $ 1.07 a share, companies located in Indianapolis, said in a statement today. Net income has fallen short of analysts expectations and Wellpoint reduces the benefit of the goal for the second time in six weeks. The company began in New York trade, then rose in the majority of almost 3 1 / 2 years after the framing of investors said they would move “ aggressive”to make changes.

Wellpoint, the owner of Blue Cross projects in 14 countries, has sparked industrywide Sell-Off and lost $ 10.1 billion market value on March 10 after revising its forecast output registered, because customers less than expected and unexpected costs had rights. How do analysts report discussed today, investors and hold Wellpoint senior industry.

“ Could you give a relief rally it?”, Says Thomas Carroll, an analyst at Stifel, Nicolaus & Co. in Baltimore, in a telephone interview today. “ The poor results were published today in the context of expectations, and came one day after the draw had acted off anyway. The investors feel well, as there is more to go on the downside.”

Rebound actions

After an initial decline of 3 percent, rose Wellpoint $ 3.39 or 7.3 percent to $ 49.94 at 4:01 pm in New York Stock Exchange Composite-commerce, the most since December 1, 2004. The price for resumption of business by officials told investors in a conference call that allegations of residues are reduced and premiums to lose money for plans are increased.

The atmosphere at other health insurance funds, surrendered yesterday after leading United Health Group Inc., Minnetonka, Minnesota, cut the profit goals. Today, Cigna Corp. of Philadelphia jumped 7.7 percent, and Hartford, Connecticut-based Aetna Inc. climbed 6.7 percent.

Wellpoint the first quarter, revenues grew by 3.1 percent over the previous year to 15.6 billion dollars. The company has reduced its forecast for the year to $ 5.42 to $ 5.67 at a rate of $ 5.76 to $ 6.01.

The insurer he said “ very demanding Erfahrung”im first quarter for drug trafficking and home care services to some 1.3 million elderly to their members in the USA-sponsored Medicare Advantage plans . The company lost $ 200 million in business, compared to $ 144 million to operating income of the prior year quarter.

Wellpoint also debt investment losses of $ 46 million, of which a large portion in equities and a decline of 5.6 percent on capital income.

Sales to individuals

The turnover with plans for the health of individuals was almost 1 percent to 2.37 million enrollees. The company is the leading provider of medical services to individuals, buy insurance directly rather than through employers or other groups.

During the first quarter earnings of $ 1.13, excluding 6 cents per share of investment losses of $ 1.18 missed average estimate of 17 analysts surveyed by Bloomberg. The company’s net income during the previous year was $ 783.1 million, or $ 1.26 a share.

Wellpoint repurchased $ 2 billion of its shares in the first quarter and its board authorized additional $ 2.3 billion in redemptions, after his statement.

The company has dropped by 43 percent this year, the ninth-worst performer in the Standard & Poor’s 500 and the lowest among the six members of the S & P 500 Managed Health Care Index. United Health, the largest provider of medical services covered by revenue, fourth place in this index, Push-40 per cent this year. The best actress was Cigna, with a drop of 20 per cent.

Medical expenses

The share of the premium in the first quarter of revenue issued by Wellpoint health care for all insurance products increased by 85.1 percent to 83.1 percent the previous year. In the fourth quarter of 2007, was the proportion of 82.9 percent.

Analysts and investors the percentage that we call the medical-loss report, as an indicator of the future profitability of industry.

On 10 March Wellpoint changed its forecast of the first quarter of calculating earnings per share on a number of $ 1.16 to $ 1.26 $ 1.44 had predicted in January. During a conference call with analysts to date, Chief Financial Officer, said Wayne DeVeydt of society aside $ 175 million for the promotion of reserves for claims not from 2007, it is higher than expected. Today, he says one side of the company an additional $ 60 million.

Vague claims

A waste management camouflaged a sharp increase in receivables at the end of the year, as members receive elektiven plan in the face of a shrinking economy, said analysts. Wellpoint also pirate 300000 members of his registration forecast for the year, on 500000 Enrollment was 35.4 million at the end of the first quarter and is expected by the end of the year to 35.3 million euros, ‘company said.

Wellpoint said medical costs for Medicare Advantage exceeded expectations, because the more the recipient has the flu. Enjoy your animal was also wounded weakness of the U.S. economy, that employers are invited to redundancies or thin advantage, Wellpoint said.

United Health has launched the health insurance industry on the profitability of the season yesterday with a 7.2 per cent higher net income, lack of analysts’ forecasts and cut full year of its profits and registration goals. The report sparked a drop of 6.4 per cent of managed health care index yesterday. Aetna is scheduled to report tomorrow.