APRIL 14, 2022 08:18 AM (EDT)
Best’s Special Report: Earnings of U.S. Publicly Traded Health Insurers Declines Utilization Approaches Normalcy
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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 14, 2022 08:18 AM (EDT)
Net income at publicly traded U.S. health insurance companies dropped by 6.6% to $36.5 billion in 2021 as an increase in utilization, compounded by higher COVID-19-related costs, negatively impacted earnings, according to a new AM Best report.
The Best’s Special Report, titled, “Earnings of U.S. Publicly Traded Health Insurers Decline as Utilization Approaches Normalcy,” states that after a year of record earnings in 2020, owing to severely suppressed utilization, the publicly traded health insurers experienced near-normal conditions in 2021, as health care usage resurged despite the ongoing COVID-19 pandemic. Insurers were hit with the resumption of elective and routine procedures that were deferred in 2020 and additional medical costs, as COVID-19 variants led to a surge in cases in the second half of the year. However, even with the drop in net income, along with a decline in operating income of 4.9%, or approximately $2.4 billion, overall earnings in 2021 were still favorable and drove 5.9% growth in shareholders’ equity to $251.9 billion.
Other highlights in the report include:
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=319111 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.