Universal American reports 1Q loss
-
- April
- 30
Universal American Corp. swung to a loss in the first quarter as setbacks on investments for the Rye Brook-based health insurer offset membership growth in its core businesses.
The company reported a net loss of $13.1 million, or 16 cents a share, during the quarter, which compares to a net loss of $46 million, or 50 cents a share, a year earlier. Total revenues for the first quarter increased 11.2 percent to $1.4 billion.
In a volatile investment climate, Universal American said it suffered pre-tax losses of $8.1 million on its investments, or 0.8 percent of its fixed-income investment portfolio.
A key part of Universal American’s growth has been its Medicare Part D business that is covered under a federal government program that helps subsidize prescription drug benefits for senior citizens. Another business, the company’s Medicare Advantage HMO health plans, reported a 14 percent quarterly revenue jump to $646.2 million.
“Our value proposition to members combined with operational improvements gives us confidence that we are well positioned to prosper in the new legislative and regulatory environment,” Richard A. Barasch, chairman and chief executive officer, said in a written statement.
This entry was posted
on Thursday, April 30th, 2009 at 3:36 pm by Jay Loomis.
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