8-KRegulation FD

Elevance Health, Inc. 8-K Report, Regulation FD Disclosure (Jan 12, 2009)

Filed January 12, 2009For Securities:ELV

Summary

Elevance Health, Inc. (then operating as WellPoint, Inc.) issued this 8-K filing on January 12, 2009, to provide preliminary financial information ahead of its fourth-quarter 2008 earnings release. The company disclosed an estimated $349 million in net realized investment losses after taxes for the fourth quarter, primarily driven by losses in both equity securities ($212 million) and fixed maturity securities ($137 million). Despite these investment losses, WellPoint reassured investors about its strong capital position, estimating that its aggregate statutory capital levels as of December 31, 2008, would significantly exceed Blue Cross and Blue Shield Association and state regulatory requirements by approximately $1.6 billion and $4.6 billion, respectively. The company explicitly stated it was in a quiet period and would not discuss earnings projections at the investor conference where this information was presented.

Key Highlights

  • 1Preliminary disclosure of estimated Q4 2008 net realized investment losses totaling $349 million after taxes.
  • 2Investment losses comprised $212 million from equity securities and $137 million from fixed maturity securities.
  • 3Estimated aggregate statutory capital levels as of December 31, 2008, to exceed Blue Cross and Blue Shield Association requirements by approximately $1.6 billion.
  • 4Estimated aggregate statutory capital levels as of December 31, 2008, to exceed state regulatory levels by approximately $4.6 billion.
  • 5The company was in a quiet period and would not discuss earnings projections at the investor conference.
  • 6The filing serves as a Regulation FD disclosure, providing material non-public information to all investors simultaneously.
  • 7The company included a comprehensive safe harbor statement regarding forward-looking statements and associated risks.

Frequently Asked Questions

This 8-K filing was made to disclose preliminary financial information regarding estimated net realized investment losses for the fourth quarter of 2008 and to provide an update on the company's statutory capital levels ahead of the official earnings release.

WellPoint estimated net realized investment losses after taxes of approximately $349 million for the fourth quarter of 2008. These losses were attributed to both equity securities ($212 million) and fixed maturity securities ($137 million).

No, the company reassured investors that despite the investment losses, its estimated aggregate statutory capital levels as of December 31, 2008, were projected to significantly exceed both Blue Cross and Blue Shield Association requirements by about $1.6 billion and state regulatory levels by about $4.6 billion, indicating strong capital adequacy.

No, the company stated it was in a quiet period prior to its scheduled fourth-quarter earnings release on January 28, 2009, and therefore, officers would not be discussing earnings projections at the investor conference where this information was presented.