WellPoint, Inc. (NYSE: WLP) today announced that third quarter 2013 net income was $656.2 million, or $2.16 per share. These results included net income of $0.06 per share, reflecting a favorable tax election and net investment gains, which were partially offset by expenses related to the early retirement of debt. Net income in the third quarter of 2012 was $691.2 million, or $2.15 per share, and included net income of $0.06 per share, reflecting net investment gains partially offset by acquisition-related costs.
Excluding the items noted in each period, adjusted net income was $2.10 per share in the third quarter of 2013, an increase of 0.5 percent compared with adjusted net income of $2.09 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”).
“I am pleased to report another solid quarter for WellPoint, and a continuation of the positive business momentum we’ve developed across the organization. I am encouraged by the results in both our Commercial and Government segments in this dynamic marketplace. Today we are raising our 2013 membership and EPS guidance, reflecting our strong performance, our continued preparation and the outlook for coming market changes under the Affordable Care Act,” said Joseph Swedish, chief executive officer.
“Our third quarter results were driven primarily by lower than anticipated medical cost experience as well as favorable membership and revenue. Our results were also supported by strong operating cash flow generation,” said Wayne DeVeydt, executive vice president and chief financial officer. “Year-to-date through September 30, 2013, we have repurchased five percent of the shares outstanding at year-end 2012 for $1.2 billion. The Board of Directors increased our share repurchase authorization by $3.5 billion during the third quarter, signaling their confidence in our ability to continue deploying capital appropriately while pursuing growth opportunities across our business segments.”