Membership Boosts Coventry Health Care
From the Associated Press
Managed health plan provider Coventry Health Care said first-quarter profit rose 2.7 percent, to $125 million (81 cents a share) from $121.7 million (76 cents) in the comparable period a year earlier, as revenue surged on increases in membership. Total operating revenue jumped 32 percent, to $2.94 billion.
The company said membership in its commercial business division rose 4.9 percent, to 2.91 million.
Coventry's commercial health plan's medical loss ratio, or percentage of premium dollars paid out on benefit claims, totaled 78.8 percent, up from 78.4 percent.
Membership in its individual consumer and government business division jumped 34 percent, to 1.76 billion.
Coventry said its Medicare Advantage medical loss ratio totaled 82.8 percent, up from 82.3 percent.
The company issued a second-quarter profit prediction below Wall Street's forecast. Coventry expects to earn $1.03 or $1.04 per share for the period, while analysts polled by Thomson Financial estimate profit at $1.10 per share, on average. The company also projected second-quarter revenue of $2.95 billion to $3.1 billion, while analysts expect $3.07 billion.
For the full year 2008, Coventry expects to earn $4.39 to $4.50 per share on $11.99 billion to $12.49 billion in revenue. Analysts forecast profit of $4.43 per share on $12.37 billion in revenue.
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