WellPoint Reports Fourth Quarter And Full Year 2011 Results And Provides 2012 Outlook

WellPoint, Inc. (NYSE: WLP) today announced that fourth quarter 2011 net income was $335.3 million, or $0.96 per share, including net investment losses of $11.7 million after-tax, or $0.03 per share. Net income in the fourth quarter of 2010 was $548.8 million, or $1.40 per share, including net investment gains of $24.1 million after-tax, or approximately $0.07 per share.

Excluding the net investment gains and losses in each period, adjusted net income was $0.99 per share in the fourth quarter of 2011, compared with adjusted net income of $1.33 per share in the prior year quarter (refer to GAAP reconciliation table for a reconciliation to the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles, or “GAAP”).

For the full year of 2011, net income was $2.6 billion, or $7.25 per share, and included net investment gains of $92.2 million after-tax, or $0.25 per share. Excluding the net investment gains, full year 2011 adjusted net income was $7.00 per share (refer to GAAP reconciliation table).

For the full year of 2010, net income was approximately $2.9 billion, or $6.94 per share, and included net investment gains of $100.2 million after-tax, or approximately $0.23 per share, partially offset by an intangible asset impairment charge of $13.7 million after-tax, or $0.03 per share. Excluding these items, full year 2010 adjusted net income was $6.74 per share (refer to GAAP reconciliation table).

“Our fourth quarter results were at the high end of our guidance range and concluded a successful 2011. During the year, we added 928,000 new medical members and achieved financial results that were in-line or better than we expected in most of our businesses. We also created a more efficient organization and executed on a number of strategic initiatives as we prepare to capitalize on the important future growth opportunities we see in the marketplace,” said Angela F. Braly, chair, president and chief executive officer. “We have the right strategies in place to continue improving the lives of the people we serve and the health of our communities. We are looking forward to delivering even more health care value in 2012 and continue to expect long-term growth and success.”