Anthem Closes Year With Slight Enrollment Growth

Enrollment in Anthem Inc.'s medical plans dropped by 13,000 in its latest quarter but increased slightly overall last year, the health insurer said Wednesday.

Anthem said 40.2 million people were enrolled in its plans at the end of 2017, an increase of less than 1% from a year earlier. More people enrolled in self-funded and fully-insured local group plans, while membership declined in its national and individual business.

Anthem has been leaving Affordable Care Act exchanges around the country and has forecast enrollment in its ACA plans to drop by about 70% in 2018. The company has said it would consider re-entering some markets next year if stability increases.

The company beat analysts' estimates in its fourth quarter, posting revenue of $22.4 billion, up 4.5% from a year ago and more than the $22.2 billion analysts expected.

Anthem reported a profit of $1.23 billion, or $4.67 a share, compared with $368 million, or $1.37 a share, a year ago. The difference primarily stems from a deferred tax benefit this year due to changes in the U.S. tax law. On an adjusted basis, net income fell 28% to $338.8 million.

The company earned an adjusted $1.29 a share, down from $1.76 a share in the year-earlier period. Analysts had expected adjusted earnings per share of $1.27.

Shares in Anthem and other health insurers were rattled Tuesday after Amazon.com Inc., JPMorgan Chase & Co. and Berkshire Hathaway Inc. said they plan to form a new company to reduce their workers' health costs. Anthem shares closed down more than 5%.

Anthem shares, up 58% over the past year, were inactive in premarket trading.

The company on Wednesday guided adjusted earnings per share for the year of more than $15.00.

The company also named a new board member, Bahija Jallal, who will join the company Feb. 1. Ms. Jallal is an executive vice president at AstraZeneca and president of its biotechnology subsidiary, MedImmune, where she oversees research and development.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

January 31, 2018 07:24 ET (12:24 GMT)