Amerigroup reports lower fourth-quarter earnings
- February 17, 2012
Virginia Beach-based based health insurer Amerigroup Corp. reported its four-quarter earnings per share fell 58 percent from the same period last year.
However, the company is expecting a 40 percent increase in revenue this year as a result of new business in Louisiana and Texas, expansion in existing markets and acquisition of the Health Plus program in New York.
That projection does not include Amerigroup’s recent selection to handle some publicly funded health plans in Washington state. A contract with the state government is being finalized.
The company expects its 2012 net income margin to range from 1.5 to 2.5 percent, with the margin improving in the last half of the year because of the increasing volume of new business.
Amerigroup, a Fortune 500 company, coordinates services for patients in publicly funded health-care programs.
Its fourth-quarter diluted earnings per share were 67 cents, down from $1.59 in the fourth quarter of 2011. Net income for the three-month period ending Dec. 31 was $32.8 million, compared with $79.6 million in 2010.
Health benefits expense as a percent of revenue was 84.7 percent in the recently completed quarter. The figure was 80.4 percent in the last quarter of 2010.
For the full year, the company had 2011 net income of $195.6 million, $3.82 a share, versus $273.4 million, or $5.40 a share, in 2010.
Revenue totaled $1.65 billion in the fourth quarter 2011 and $6.32 billion for the year.
Membership in health plans handled by Amerigroup increased by 93,000 people last year, 4.8 percent, to more than 2 million.