Fierce Healthcare July 16, 2021
Earnings growth for insurers has outpaced the broader market, and that’s a trend that’s likely to continue, according to a new report from Moody’s Investors Service.
Moody’s analysts tracked eight large health plans: UnitedHealth Group, Anthem, Cigna, Aetna, Humana, Centene Corporation, Health Care Service Corporation and Highmark. In 2010, the aggregate earnings before interest, taxes, depreciation and amortization (EBITDA) across all eight was $24.7 billion.
By 2020, that figure rose to $64.9 billion, an increase of 10.1% on average each year. By comparison, the average annual growth rate for S&P 500 companies’ operating earnings was 3.9%, and U.S. gross domestic product growth was 3.5% in that window.
That growth has been driven by several factors, which do vary somewhat between...
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