WellPoint Net Income More Than Doubles

First-quarter net income at the nation’s largest health insurance provider, WellPoint Inc., more than doubled as the company reported the first results from its $16.5-billion merger of the two largest Blue Cross-Blue Shield providers. The company also said Wednesday that it expected to earn more in 2005 than previously forecast.

The Indianapolis-based provider of Blue Cross and Blue Shield plans and other medical insurance earned $611.7 million, or $1.97 a share, compared with $295.6 million, or $2.08, a year earlier, when it operated as Anthem Inc.

Revenue was $11.1 billion, compared with $4.57 billion for Anthem a year earlier.

Analysts surveyed by Thomson First Call had been looking for earnings of $1.83 a share on sales of $11.25 billion.

WellPoint also declared a 2-for-1 stock split effective May 13.

Its shares rose $6.42, or 5.4%, to $124.45 on the New York Stock Exchange.

The company was created Nov. 30, when Anthem acquired Thousand Oaks-based WellPoint Health Networks Inc. in a $16.5-billion deal and changed its name to WellPoint Inc.

WellPoint also raised its earnings forecast. It now projects second-quarter earnings of $1.92 a share, up from $1.90, and $7.94 a share for the full year, up from $7.75. The new estimate does not reflect the pending stock split.

From Associated Press

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