Reporting

Financials

Financial Highlights 

Total Revenue
(in billions)

2018

$92.1

2019

$104.2

2020

$121.9

Total Medical Membership
(in millions)


2018

39.9

2019

41.0

2020

42.9

Net Income Per Diluted Share
(in whole dollars)

2018

$14.19

2019

$18.47

2020

$17.98

Adjusted Net Income Per Diluted Share
(in whole dollars)

2018

$15.89

2019

$19.44

2020

$22.48

Selling, General and Administrative Expense Ratio


2018

15.3%

2019

13.0%

2020

14.4%

Benefit Expense Ratio

2018

84.2%

2019

86.8%

2020

84.6%

Operating Cash Flow
(in billions)

2018

$3.8

2019

$6.1

2020

$10.7

Funding Arrangement

Self-funded 25,296

Fully insured 17,296

Customer Type

Local group 15,614

Medicaid 8,852

National account 7,736

BlueCard® 6,059

Medicare 2,361

FEHB 1,623

Individual 680

Financial and Membership Highlights

(dollars in millions, except per share data) 2020 2019 2018
Operating Results      
Total operating revenue $120,808 $103,141 $91,341
Total revenue 121,867 104,213 92,105
Net income 4,572 4,807 3,750
       
Net Income Per Share      
Basic $18.23 $18.81 $14.53
Diluted 17.98 18.47 14.19
Dividends per share 3.80 3.20 3.00
       
Balance Sheet Information      
Total assets $86,615 $77,453 $71,571
Total liabilities 53,416 45,725 43,030
Total shareholders’ equity 33,199 31,728 28,541
       
Medical Membership (000’s)      
Commercial and specialty business 30,089 30,022 29,814
Government business 12,836 10,978 10,124
Total medical membership 42,925 41,000 39,938
       
Customer Type      
Local group 15,614 15,682 15,733
Individual 680 684 655
National:      
National accounts 7,736 7,596 7,588
BlueCard® 6,059 6,060 5,838
Total national 13,795 13,656 13,426
       
Medicare 2,361 2,119 1,852
Medicaid 8,852 7,265 6,716
FEHB 1,623 1,594 1,556
Total medical membership 42,925 41,000 39,938
       
Funding Arrangement      
Self-funded 25,629 25,418 25,287
Fully insured 17,296 15,582 14,651
Total medical membership 42,925 41,000 39,938
       
Other Membership      
Life and disability members 5,064 5,259 4,795
Dental members 6,385 6,263 5,807
Dental administration members 1,316 5,516 5,327
Vision members 7,536 7,261 6,946


The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Anthem’s 2020 Annual Report on Form 10-K.

Consolidated Balance Sheets

(in millions, except share data) December 31, 2020 December 31, 2019
Assets    
Current assets:    
Cash and cash equivalents $5,741 $4,937
Fixed maturity securities, current (amortized cost of $22,222 and $19,021) 23,433 19,676
Equity securities 1,559 1,009
Premium receivables 5,279 5,014
Self-funded receivables 2,849 2,570
Other receivables 2,830 2,807
Other current assets 4,060 3,020
Total current assets 45,751 39,033
Long-term investments:    
Fixed maturity securities (amortized cost of $532 and $487) 562 505
Other invested assets 4,285 4,258
Property and equipment, net 3,483 3,133
Goodwill 21,691 20,500
Other intangible assets 9,405 8,674
Other noncurrent assets 1,438 1,350
Total assets $86,615 $77,453
   
Liabilities and shareholders’ equity    
Liabilities    
Current liabilities:    
Policy liabilities:    
Medical claims payable $11,359 $8,842
Other policyholder liabilities 4,590 3,050
Unearned income 1,259 1,017
Accounts payable and accrued expenses 5,493 4,198
Short-term borrowings 700
Current portion of long-term debt 700 1,598
Other current liabilities 6,052 4,127
Total current liabilities 29,453 23,532
Long-term debt, less current portion 19,335 17,787
Reserves for future policy benefits 794 759
Deferred tax liabilities, net 2,019 2,227
Other noncurrent liabilities 1,815 1,420
Total liabilities $53,416 $45,725
Commitments and contingencies – Note 14    
Shareholders’ equity    
Preferred stock, without par value, shares authorized – 100,000,000; shares issued and outstanding – none
Common stock, par value $0.01, shares authorized – 900,000,000; shares issued and outstanding – 245,401,430 and 252,922,161 3 3
Additional paid-in capital 9,244 9,448
Retained earnings 23,802 22,573
Accumulated other comprehensive income (loss) 150 (296)
Total shareholders’ equity 33,199 31,728
Total liabilities and shareholders’ equity $86,615 $77,453


The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2020 Annual Report on Form 10-K.

Consolidated Statements of Income

Years Ended December 31
(in millions, except per share data) 2020 2019 2018
Revenues      
Premiums $104,109 $94,173 $85,421
Product revenue 10,384 2,760
Administrative fees and other revenue 6,315 6,208 5,920
Total operating revenue 120,808 103,141 91,341
Net investment income 877 1,005 970
Net realized gains (losses) on financial instruments 182 67 (206)
Total revenues 121,867 104,213 92,105
Expenses      
Benefit expense 88,045 81,786 71,895
Cost of products sold 8,953 1,992
Selling, general and administrative expense 17,450 13,364 14,020
Interest expense 784 746 753
Amortization of other intangible assets 361 338 358
Loss on extinguishment of debt 36 2 11
Total expenses 115,629 98,228 87,037
Income before income tax expense 6,238 5,985 5,068
Income tax expense 1,666 1,178 1,318
Net income $4,572 $4,807 $3,750
Net income per share      
Basic $18.23 $18.81 $14.53
Diluted $17.98 $18.47 $14.19
Dividends per share $3.80 $3.20 $3.00


The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2020 Annual Report on Form 10-K.

Consolidated Statements of Comprehensive Income

Years Ended December 31
(in millions) 2020 2019 2018
Net income $4,572 $4,807 $3,750
Other comprehensive income (loss), net of tax:      
Change in net unrealized gains/losses on investments 428 680 (418)
Change in non-credit component of other-than-temporary impairment losses on investments (2)
Change in net unrealized gains/losses on cash flow hedges 12 (16) 37
Change in net periodic pension and post-retirement costs (1) 26 (90)
Foreign currency translation adjustments 7 (1)
Other comprehensive income (loss) 446 690 (474)
Total comprehensive income $5,018 $5,497 $3,276


The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2020 Annual Report on Form 10-K.

Consolidated Statements of Cash Flows

Years Ended December 31
(in millions) 2020 2019 2018
Operating activities      
Net income $4,572 $4,807 $3,750
Adjustments to reconcile net income to net cash provided by operating activities:      
Net realized (gains) losses on financial instruments (182) (67) 206
Depreciation and amortization 1,154 1,133 1,132
Deferred income taxes (540) 81 91
Impairment of property and equipment 198
Share-based compensation 283 294 226
Changes in operating assets and liabilities:      
Receivables, net (256) (1,053) (695)
Other invested assets (32) (48) (1)
Other assets (283) (170) (26)
Policy liabilities 3,528 1,826 (1,059)
Unearned income 202 115 (36)
Accounts payable and other liabilities 1,978 (445) 97
Income taxes 72 (325) 323
Other, net (6) (87) (181)
Net cash provided by operating activities 10,688 6,061 3,827
Investing activities      
Purchases of investments (19,492) (22,954) (9,671)
Proceeds from sales of investments 11,318 18,598 9,662
Maturities, calls and redemptions from investments 4,741 2,437 1,938
Changes in securities lending collateral (849) 254 (149)
Purchases of subsidiaries, net of cash acquired (1,976) (1,760)
Purchases of property and equipment (1,021) (1,077) (1,208)
Other, net (45) (50) (71)
Net cash used in investing activities (7,324) (2,792) (1,259)
Financing activities      
Net repayments of commercial paper borrowings (150) (297) (107)
Proceeds from long-term borrowings 2,484 2,473 835
Repayments of long-term borrowings (1,932) (1,123) (1,684)
Proceeds from short-term borrowings 970 7,590 9,120
Repayments of short-term borrowings (1,670) (8,035) (9,250)
Changes in securities lending payable 849 (254) 150
Proceeds from issuance of common stock under Equity Units stock purchase contracts 1,250
Repurchase and retirement of common stock (2,700) (1,701) (1,685)
Cash dividends (954) (818) (776)
Proceeds from issuance of common stock under employee stock plans 176 187 173
Taxes paid through withholding of common stock under employee stock plans (128) (84) (81)
Other, net 488 (204) (186)
Net cash used in financing activities (2,567) (2,266) (2,241)
Effect of foreign exchange rates on cash and cash equivalents 7 (2)
Change in cash and cash equivalents 804 1,003 325
Cash and cash equivalents at beginning of year 4,937 3,934 3,609
Cash and cash equivalents at end of year $5,741 $4,937 $3,934


The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2020 Annual Report on Form 10-K.

GAAP Reconciliation (Unaudited)

We have referenced “Adjusted Net Income Per Diluted Share”, which is a non-GAAP measure, in this document. This non-GAAP measure is not intended to be an alternative to any measure calculated in accordance with GAAP. Rather, this non-GAAP measure is intended to aid investors in understanding and analyzing our core operating results and comparing our financial results. A reconciliation of this measure to the most directly comparable measure calculated in accordance with GAAP is presented below.
Years Ended December 31
2020 2019 2018
Net income per diluted share $17.98 $18.47 $14.19
Add / (Subtract):      
Net realized (gains) losses (0.72) (0.26) 0.78
Amortization of intangibles 1.42 1.30 1.36
Loss on extinguishment of debt 0.14 0.01 0.04
Business optimization charges 2.57
BCBSA litigation settlement 2.15
Transaction and integration related costs 0.19 0.04 0.03
Litigation expenses 0.16 0.20
Tax impact of non GAAP adjustments (1.42) (0.32) (0.51)
Rounding impact 0.01
Net adjustment items 4.50 0.97 1.70
Adjusted net income per diluted share $22.48 $19.44 $15.89