10-KPeriod: FY2011

Elevance Health, Inc. Annual Report, Year Ended Dec 31, 2011

Filed February 22, 2012For Securities:ELV

Summary

Elevance Health, Inc. (formerly WellPoint, Inc.) reported strong financial performance for the fiscal year ended December 31, 2011. The company experienced a 3.7% increase in total operating revenue to $59.9 billion, driven by premium rate increases and membership growth in its Senior business. Net income, however, saw a slight decrease of 8.3% to $2.6 billion, primarily due to lower operating results in the Consumer segment, partially offset by improvements in the Commercial and Other segments. Despite the dip in net income, diluted earnings per share (EPS) rose by 4.5% to $7.25, aided by a reduction in outstanding shares due to a robust share repurchase program. The company's strategic acquisition of CareMore in August 2011 positions it for future growth in the senior care market. Management highlighted a commitment to enhancing member value through innovative care management programs and technology investments. Looking ahead, Elevance Health aims to drive growth organically and through strategic acquisitions, focusing on earnings per share growth and efficient capital deployment.

Financial Highlights

53 data points
Beta

Revenue

$60.71B

100.0% Gross Margin

Net Income

$2.65B

4.4% Net Margin

EPS (Diluted)

$7.25

Total Assets

$52.16B

Cash & Equivalents

$2.20B

Free Cash Flow

$2.85B

Financial Statements
Beta
Revenue$60.71B
Cost of Revenue$0
Gross Profit$60.71B
SG&A Expenses$8.44B
Operating Income$3.78B
Interest Expense$430.30M
Net Income$2.65B
EPS (Basic)$7.35
EPS (Diluted)$7.25
Shares Outstanding (Basic)360.20M
Shares Outstanding (Diluted)365.10M

Key Highlights

  • 1Total operating revenue increased by 3.7% to $59.9 billion in 2011.
  • 2Net income decreased by 8.3% to $2.6 billion, impacted by lower performance in the Consumer segment.
  • 3Diluted EPS increased by 4.5% to $7.25, benefiting from share repurchases.
  • 4Acquisition of CareMore Health Group, Inc. completed in August 2011, strengthening senior care offerings.
  • 5Total medical membership grew by 2.8% to 34.3 million members.
  • 6Company continued to return capital to shareholders through dividends and share repurchases.
  • 7Medical cost trend was estimated at approximately 7% for 2011, primarily driven by unit costs.

Frequently Asked Questions

In 2011, Elevance Health (WellPoint) reported total operating revenue of $59.9 billion, an increase of 3.7% from 2010. Net income decreased by 8.3% to $2.6 billion, primarily due to lower operating results in the Consumer segment, partially offset by improvements in other segments.

The acquisition of CareMore, completed in August 2011, was a strategic move to enhance the company's offerings in the senior care market. CareMore focuses on proactive, integrated, and individualized health care for seniors, and its inclusion is expected to support future growth opportunities.

Elevance Health plans to achieve future growth through a combination of organic growth initiatives, strategic acquisitions, and efficient use of capital. The company aims to leverage its scale, technology, and diverse product portfolio to capitalize on new opportunities in existing and new markets.

In 2011, Elevance Health continued its capital return strategy by initiating quarterly dividends and actively repurchasing shares under its common stock repurchase program. The company also used capital for strategic acquisitions, such as CareMore.