Universal American, a health insurance company, has reported a net loss of $4.9m, or $0.06 per diluted share, for the second quarter of 2011, compared to a net income of $21m or $0.27 per diluted share, in the year ago period.
Total revenues in the second quarter decreased to $577.4m from $874.5m in the year-ago quarter.
In the quarter, Universal’s Medicare Advantage MBR was 82.8% as compared to 82.6% in the same period of 2010.
As of 30 June2011, total cash and investments were $1.2bn and total assets were $2.3bn. Total policyholder liabilities were $1bn and total liabilities were $1.3bn.
The ratio of debt to total capital, excluding the effect of Accumulated Other Comprehensive Income (Loss) and including Universal American’s mandatorily redeemable preferred stock as debt was 3.9% at 30 June 2011, said the insurer.
Universal American chairman and CEO Richard Barasch said now that we have successfully completed the sale of the Part D business, the firm focused on regaining the momentum in the Medicare Advantage business and exploring the many opportunities to use the expertise in complementary businesses.
"Our steady medical benefit ratio (MBR) results are indicative of the inherent strength of our Medicare Advantage business, both in the current year and as the basis of our 2012 bids," Barasch said.