Insurer Stocks Drop After Revised Earning Forecasts
MANASQUAN, NJ -- July 14, 2008: The share prices of seven of the major health
have tumbled over the past year and could continue to decline,
according to a report by The
Executive Report on Managed Care.
A comparison of stock prices from April 11, 2007
April 11, 2008 showed drops between 7 percent and 48 percent for health
insurers. The decline began surfacing last year, the report states, as
Humana, WellPoint and Coventry revised their initial earnings
Aetna reported a $3.33 decline from $44.35 to
between April 11, 2007 and April 11, 2008, a 7 percent decrease in
stock value. The 2008 value represented a 31.6 percent difference from
Aetna’s 52-week high of $60 a share.
Similarly, CIGNA experienced a drop in its stock
going from $48.96 in to $41.85 in one yea. The 14.5 percent decrease,
though more than Aetna’s, represented only half of
Coventry’s 28 percent loss.
Political pressure and spotlight have been cited
reasons for the unstable market, as well as the costs that originally
caused companies to revise their earnings estimates.
For more information on The Executive Report on Managed
Care, visit http://www.healthresourcesonline.com/managed_care/14nl.htm.
Address: The Managed Care Information
Atlantic Ave., Ste. F5, Manasquan, NJ 08736; (732) 292-1100, www.themcic.com.