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Innovating for a healthier tomorrow
2011 ANNUAL REPORT
10
Innovating for a healthier tomorrow
A LETTER FROM THE CEO
Angela F. Braly
Chair, President and CEO
At WellPoint, our mission is to improve the lives of the people we serve and the health of
our communities. Simply put, we are committed to innovating for a healthier tomorrow.
Performing Today . . .
In 2011, we confronted many external challenges: rising costs, a shortage of primary care
physicians, an uncertain political and regulatory environment, a shifting customer mix, and a
struggling economy, to name a few. Despite these, we took important steps to strengthen
our company. We added more than 900,000 medical members during the year while reduc-
ing our selling, general and administrative expenses by nearly $300 million, or more than
3 percent. Our ability to add new customers while controlling costs demonstrated the
strength of our core capabilities and our emphasis on creating a more affordable operating
model for our customers.
Full year 2011 net income was $2.6 billion, or $7.25 per share, including net investment
gains of $92.2 million after-tax, or $0.25 per share. Excluding the net investment gains, full
year 2011 adjusted net income was $7.00 per share.
While our 2011 performance exceeded expectations, a few of our business lines did not
realize their full potential; in particular, we have some work to do in our Senior and State
Sponsored businesses. Our Senior business fell significantly below expectations due to pric-
ing and membership selection issues in certain markets, and our State Sponsored business
fell short in part due to retroactive regulatory actions. We have taken steps to address the
problems we saw with these businesses and expect to see improved financial performance
from them in 2012.
Our success hinges on having a strong foundation of service, quality, and day-to-day opera-
tional excellence. Toward that end, in 2012 we plan to invest $700 million internally to further
bolster this foundation and improve performance, while continuing to drive efficiency in all of
our processes.
To Our Shareholders, Customers and Communities:
Total Revenue
(In Billions)
2010 2011
$58.7 $60.7
33.3 34.3
Total Medical Membership
(In Millions)
2010 2011