Yahoo Finance Live’s Julie Hyman and Brian Sozzi discuss quarterly earnings for Anthem.
JULIE HYMAN: Let's talk about one more company, squeeze one more in before the bell. Anthem, the big insurance company, which is rebranding itself, by the way, as Elevance.
BRIAN SOZZI: Of course, it is.
JULIE HYMAN: Elevance, Elevance-- I don't know.
BRIAN SOZZI: Elevance, Elevance, Elevate, or--
JULIE HYMAN: It is up 2 and 1/2% after earnings beat estimates, $8.25 a share, and the company raised its forecast for the full year 2022. Medical loss ratio-- that's the important number for insurance companies, how much of their premiums do they end up paying out-- 86.1%. And the company had already guided that that number was going to be better than expected.
BRIAN SOZZI: This stock has been on fire, Julie, up about 37% over the past year. But it looks, you know, just my sense from that company's new name, it's just another healthcare insurer just trying to suggest they're focused on health and wellness and more things than pumping out insurance to people.
JULIE HYMAN: Yeah, well, they also added more-- they are pumping out insurance, 3.3 million new members compared to a year ago. It's all growth in Medicare and Medicaid and its commercial business. But to your point as well, when you get that sort of rebranding focused on health and wellness, I mean, to some degree, it would be good for them if they--
BRIAN SOZZI: And good for Cigna, too. You know, this quarter from Anthem probably suggests a good quarter from UnitedHealth, Cigna. I think that's the way. If you're out there trading Anthem, that's the way you probably have to think about it.
JULIE HYMAN: Yeah, I mean, but I guess what I'm trying to say is more and more of these insurers are also focusing on rewarding you for preventative health, because it's good for their business, right, if they have to worry about--
BRIAN SOZZI: I should be rewarded. If I go on the treadmill for an hour, I should get a cookie. Give me a reward. Not an actual cookie, but maybe I should get a couple of bucks off my insurance. I want to be rewarded.
JULIE HYMAN: Yes, a figurative--
BRIAN SOZZI: Elevate, send me a check.
JULIE HYMAN: Elevance.
BRIAN SOZZI: Elevance.
JULIE HYMAN: OK, here's a cookie.
BRIAN SOZZI: Elephant, whatever.
JULIE HYMAN: All right.