WellPoint 2Q profit slumps on investment loss

[July 29, 2009]  INDIANAPOLIS (AP) -- Health insurer WellPoint Inc. said Wednesday its profit fell 7.6 percent in the second quarter as it felt the effect of investment losses.

But its earnings excluding the investment losses topped Wall Street estimates and ity reaffirmed its full-year guidance.

The Indianapolis company earned $693.5 million, or $1.43 per share, down from $750.5 million, or $1.44 per share, a year ago.

WellPoint said its adjusted earnings came to $1.50 per share, excluding 7 cents per share in investment losses.

Revenue fell nearly 2 percent to $15.41 billion.

Analysts expected, on average, earnings of $1.43 per share on $15.4 billion in revenue, according to Thomson Reuters. Analysts typically exclude one-time items.

Total medical enrollment fell by 1.1 million members, or 3 percent, to 34.2 million people compared to the same quarter last year mainly due to rising unemployment.

Pretax investment losses totaled $58.3 million.

WellPoint said it reaffirmed its adjusted profit outlook for 2009. The insurer expects a full-year profit of $5.06 to $5.12 per share. That includes net investment losses of 54 cents per share.

[Associated Press]

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