Blue Cross Reports 51% Profit Gain in 1991

Blue Cross of California said its profit in 1991 soared 51% to a record $164.3 million from $108.6 million the previous year.

The Woodland Hills-based company, the state’s largest health-insurance concern, does not technically earn profits because it is a nonprofit entity. But the net gains nonetheless measure how much extra cash Blue Cross is able to set aside for future claims.

Indeed, Blue Cross said it added $179.2 million to its reserves last year, bringing the total to $363.4 million. The company’s tangible net equity--the amount of assets it has minus what it expects to pay in claims--jumped 74% last year, to $411.5 million from $236.5 million.