The health insurance industry reported a refuse of 12.4% in net income, to $8.2 billion as of Sept. 30, compared to the similar period in 2008, according to a new investigation by Highline Data.
The 10 biggest companies ranked by year-end 2008 total resources accounted for $2.8 billion, or 35% of the entire industry net income during the quarter, significantly outperforming smaller players, according to Highline, a supplementary of top Business Media Inc., the parent corporation of National Underwriter.
Of all companies in the manufacturing, 335, or 38%, reported underwriting wounded in the third quarter.
Underwriting deductions, which mainly include health benefit payments, increased by 4.5% year-over-year and totaled $332 billion as of Sept. 30.
Underwriting deductions showed a 5-year compound yearly growth rate of 9.5%, outpacing total income, which showed a 5-year CAGR of 9.2%.
In general, the industry saw gains in total property, capital and surplus, and member months, all civilizing over 2008 results. Return on average equity sustained to fall, though, reaching a 6-year low of 11.1%.
“While the public perception is that health companies are recording record income, the reality they face is obviously a reduction in profit margins, attainment a four-year low of 2.4%,” supposed Laurie Dallaire, vice president of Highline, Cambridge, Mass. “Yet previous to the expected impact of pending healthcare reform legislation, the industry will persist to see miserable margins as companies strive to deal with premiums and profit costs.”
The 10 biggest companies ranked by year-end 2008 total resources accounted for $2.8 billion, or 35% of the entire industry net income during the quarter, significantly outperforming smaller players, according to Highline, a supplementary of top Business Media Inc., the parent corporation of National Underwriter.
Of all companies in the manufacturing, 335, or 38%, reported underwriting wounded in the third quarter.
Underwriting deductions, which mainly include health benefit payments, increased by 4.5% year-over-year and totaled $332 billion as of Sept. 30.
Underwriting deductions showed a 5-year compound yearly growth rate of 9.5%, outpacing total income, which showed a 5-year CAGR of 9.2%.
In general, the industry saw gains in total property, capital and surplus, and member months, all civilizing over 2008 results. Return on average equity sustained to fall, though, reaching a 6-year low of 11.1%.
“While the public perception is that health companies are recording record income, the reality they face is obviously a reduction in profit margins, attainment a four-year low of 2.4%,” supposed Laurie Dallaire, vice president of Highline, Cambridge, Mass. “Yet previous to the expected impact of pending healthcare reform legislation, the industry will persist to see miserable margins as companies strive to deal with premiums and profit costs.”
