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Dec 31, 2021
Elevance Health Q4 2021 Earnings Report
Anthem reported strong financial performance with double-digit top and bottom line growth.
Key Takeaways
Anthem, Inc. reported fourth quarter and full year 2021 results reflecting strong financial performance, including double-digit top and bottom line growth. Fourth quarter operating revenue grew by 14.2% to $36.0 billion, and medical enrollment increased by 303 thousand members to 45.4 million members.
Fourth quarter GAAP net income was $4.63 per share, including net negative adjustment items of $0.51 per share. Adjusted net income was $5.14 per share.
Full year GAAP net income was $24.73 per share, including net negative adjustment items of $1.25 per share. Adjusted net income was $25.98 per share.
Fourth quarter operating revenue grew by 14.2% over the prior year quarter to $36.0 billion.
Medical enrollment increased by 2.4 million members year-over-year and 303 thousand members in the fourth quarter to 45.4 million members.
Elevance Health
Elevance Health
Forward Guidance
Full year 2022 GAAP net income is expected to be greater than $26.75 per share. Adjusted net income is expected to be greater than $28.25 per share.
Positive Outlook
- GAAP net income is expected to be greater than $26.75 per share, including approximately $1.50 per share of net unfavorable items.
- Adjusted net income is expected to be greater than $28.25 per share.
- Medical membership is expected to be in the range of 45.6 - 46.2 million.
- Operating revenue is expected to be approximately $152 billion, including premium revenue of approximately $130 billion.
- Operating cash flow is expected to be greater than $6.9 billion.
Challenges Ahead
- Benefit expense ratio is expected to be in the range of 88.0% plus or minus 50 basis points.
- SG&A ratio is expected to be 10.8% plus or minus 50 basis points.
- Investment income is expected to be $1.1 billion.
- Interest expense is expected to be $840 million.
- Effective tax rate is expected to be between 22.0 - 24.0%.