Anthem ups 2021 outlook after profit beat on lower costs

[October 20, 2021]  (Reuters) -Anthem Inc raised its earnings forecast for 2021 on Wednesday after the second-largest U.S. health insurer beat third-quarter profit estimates on the back of lower-than-expected medical costs.

Anthem forecast 2021 adjusted profit to exceed $25.85 per share, raising its outlook for the third time this year. Earlier, the insurer had forecast a profit of more than $25.5 per share.

Excluding special items, Anthem earned $6.79 per share in the quarter ended Sept. 30, ahead of the average analyst estimate of $6.37.

The Indianapolis-based group said its benefit expense ratio - the percentage of premiums paid for medical services - was 87.7% in the third quarter, better than the 88.38% forecast by analysts according to Refinitiv IBES data.

Health insurers' medical costs have been in flux since the coronavirus outbreak, with lower costs resulting from elective procedure delays being offset by a jump in direct COVID-19 treatment and testing costs.

Rival UnitedHealth Group last week raised its full year 2021 profit view and forecast the pandemic to have a smaller impact on its profit next year as infections decline and more people get vaccinated.

(Reporting by Leroy Leo and Manojna Maddipatla in Bengaluru; Editing by Tomasz Janowski)

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