(Reuters) - Anthem Inc (N:ANTM) reported a better-than-expected quarterly profit on Wednesday as it benefited from higher sales of its government-backed health plans, prompting the health insurer to raise its full-year profit forecast.
The company, which earlier this year launched pharmacy benefits business IngenioRx, forecast adjusted 2019 earnings of more than $19.40 per share, up from its prior view of more than$19.30.
Operating revenue from its government business, which sells Medicare and Medicaid health plans, rose 14% to $15.96 billion.
The company said its benefit expense ratio — the percentage of premiums paid for medical services — worsened to 87.2% from 84.8% a year earlier. Analysts on average expected 86.59%, according to IBES data from Refinitiv. A lower benefit expense ratio is better for health insurers.
Net income rose to $1.18 billion, or $4.55 per share, in the third quarter ended Sept. 30 from $960 million, or $3.62 per share, a year earlier.
Excluding items, the company earned $4.87 per share, ahead of the average analyst estimate of $4.82 per share.
Total operating revenue rose 15% to $26.44 billion, beating estimates of $25.88 billion.