WellPoint delivers on its promises (to Wall Street)
Bank of America Health Care Conference
June 1, 2007
WellPoint, Inc.
Angela Braly, President and CEO, WellPoint, Inc.:
Let me conclude with a few investment considerations for you to take away from this presentation. Health-care costs continue to rise at a faster pace than overall inflation and are now projected to comprise approximately 20% of the gross domestic product by 2016. We believe that our strategic plan positions us very well to address this continued rise in health-care expenditures as we bring a superior value proposition to the marketplace and a strong voice in the community that helps in advocating a choice-based private health-care market.
The health insurance sector is continuing an era of consolidation. Back in 1995, the ten largest companies enrolled just 27% of the market, whereas today, the ten largest plans have about 52% of the market. Considering the investments required to effectively compete in new areas like consumer-directed health-care and comply with ever-changing regulations, many smaller plans are deciding to leave the industry or partner with larger plans to improve their competitive position.
WellPoint has a consistent track record of delivering on our financial promises to Wall Street and we expect this to continue. With our projected earnings of $5.54 per share for 2007, our compound annual EPS (earnings per share) growth rate will be 22% over a six-year period.
So in summary, we believe that WellPoint is a compelling investment opportunity with strong growth prospects, and I hope that you agree.
Wayne DeVeydt, EVP and CFO, WellPoint, Inc.:
I think one of the questions that I will get from many of you over the near term will be my philosophy, and I want to make sure everybody in this room understands and on the webcast that I’m fully committed to the 15% earnings per share growth and believe that that is sustainable for not only the near term, but the longer term.
Unidentified Participant:
We think it’s a compelling opportunity as well for investment and we appreciate very much you coming out, especially on such short notice. Congratulations on your promotion, both of you.
http://insurancenewsnet.com/article.asp?n=1&neID=20070601560.2_b27102f26f3269f2
Audio and slides
http://www.veracast.com/webcasts/bas/healthcare07/id47301336.cfm
Comment:
By Don McCanne, MD
For those of us who continue to fight for comprehensive, affordable health care for everyone, listening to this webcast or reading the transcript is a very painful half-hour experience. WellPoint is 100 percent committed to “delivering on our financial promises to Wall Street.”
This presentation by the new leadership of WellPoint, Inc. should be mandatory listening for those policymakers who insist that the private insurance industry must be included in our models of reform.
One important caveat: Members of the policy community who believe that health care is about patients should take an anti-emetic before accessing this presentation (though those on Wall Street may wish to break out the champagne).