Elevance Health

This is our first report on Elevance Health, formerly known as Anthem Inc., a major American healthcare insurance player. The company finished 2022 on a mixed note with revenues below Wall Street expectations but managed an earnings beat. In the quarter, medical membership grew, led by growth in Medicaid. This is driven by the acquisition of Vivida Health. Carelon and Carelon Rx services grew revenue. The consolidated benefit expense ratio showed a decrease. The SG&A expense ratio of Elevance Health reflected an improvement in the quarter and there was also an improvement in the commercial underwriting margin. The recent acquisition of Blue Sheild and Blue Cross of Louisiana is committed to improving the lives and health of people. Among expansion updates, Elevance Health announced the acquisition of the largest independent specialty pharmacy provider, BioPlus. This acquisition furthers the commitment of Elevance to scaling healthcare services to address the needs of health plans. We initiate coverage on Elevance Health with a ‘Hold’ rating.