Anthem Blue Cross 2012 Annual Report Download - page 29

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29
2012 Annual Report
Letter to Shareholders
Effective
Delivery System
Enhanced
Consumer Experience
Affordable
Health Care
29Strengthening our Foundation
Healthier
Communities
Continued
Financial Performance
To our shareholders,
When I assumed the role of WellPoint’s Interim President and CEO last August, I made three commit-
ments to our investors, our customers, our Board, and our associates: we would meet our financial
and operational objectives, close the Amerigroup transaction, and take the necessary steps to position
your company for success. I am pleased to say we delivered on each of these commitments, and I am
proud of what we’ve accomplished.
WellPoint’s financial performance improved over the course of 2012, driven by a combination of better
core operating performance and favorability in our capital management areas. Membership was up
5.5 percent, bringing our total medical membership to more than 36 million, and we continued to
manage our expenses responsibly while funding a diverse portfolio of strategic initiatives. Together,
these factors led to full year net income of $2.7 billion and adjusted net income of $7.56 per share, an
8.0 percent increase over 2011.
Outside of our financial performance, we took important steps in 2012 to position our company
for the opportunities ahead. We centered our strategy around four key growth areas: Medicare, the
Medicare-Medicaid dual eligibles, the emerging health insurance exchanges, and our specialty busi-
nesses, specifically vision and dental. We then matched the top talent from our company and our
recent acquisitions to create a best-in-class leadership team with deep market knowledge and specialized
operational expertise. By aligning our strategy and structure, we’ve empowered our leaders, enabling
them to better influence and more nimbly react to the factors that impact their businesses.
Near the end of 2012, we also successfully completed our acquisition of Amerigroup, a significant
accomplishment and testament to the leaders and workgroups on both sides of the transaction. We
now serve over 4.5 million Medicaid beneficiaries in 20 states, giving us the largest Medicaid footprint
in the industry. By retaining key operating talent and leveraging the proven care management models
of both Amerigroup and our CareMore subsidiary, we now have unmatched capabilities to manage
care for the nation’s growing high risk, high needs populations.