WellPoint Reports Profit Decline of 21% in Quarter

WellPoint Health Networks Inc., the Woodland Hills-based subsidiary of Blue Cross of California, said its second-quarter profit fell 21% compared with a year earlier, despite an 8% increase in premium revenue.

WellPoint said net income was $37.6 million for the quarter ended June 30, compared with $47.6 million a year earlier. But premium revenue in the latest quarter rose to $585.9 million, from $542.6 million. WellPoint said profits were higher in the second quarter last year because of premium increases for small employer products and a one-time gain of $5.6 million from its bond portfolio.

For the six months ended June 30, WellPoint’s profit dropped 30%, to $63.8 million from $90.7 million a year earlier. Premium revenue was up 8%, to $1.16 billion from $1.07 billion.