Insurers WellPoint, Humana Profits Fall By Kim Dixon CHICAGO (Reuters) - No. 1 health insurer WellPoint Inc. (WLP.N: Quote , Profile , Research ) on Monday posted lower quarterly profit on special items and charges linked to its recent merger with Anthem, sending shares of most HMOs lower. Smaller rival Humana Inc. (HUM.N: Quote , Profile , Research ) also said quarterly profit fell, hurt by the timing of how soon it will record earnings from a new contract with Tricare, the health insurance program for the U.S. military. Though WellPoint's results beat Wall Street expectations by a penny, they failed to please investors who have become accustomed to HMOs blowing past estimates, analysts said. "Earnings were basically solid, but they already preannounced and there were not many surprises there, which might disappoint some of the traders," said Michael Obuchowski, a principal at Altanes Investments, of WellPoint's share drop. WellPoint said fourth-quarter net profit dropped on debt-repayment costs and charges related to its November 2004 merger with Anthem Inc., which created the biggest U.S. health insurer, with about 28 million customers. WellPoint earnings fell to $184.5 million, or 92 cents per share, from $208.8 million, or $1.47 per share, a year earlier. That beat its prior forecast of 90 cents per share on an operating basis. Results include expenses of 78 cents related to the merger and debt repayment and a 1-cent gain on investments. Year-earlier results include only operations of the former Anthem Inc. Wall Street analysts polled by Reuters Estimates on average saw the company earning $1.68 per share. Such estimates typically exclude charges. WellPoint stood by its forecast given last month of $7.75 per-share profit for the full year and $1.82 for the 2005 first quarter. Revenue at WellPoint rose to $6.8 billion from $4.3 billion a year ago, partly owing to the merger. The company projected 2005 enrollment growth of 4 percent. Most of the big U.S. health insurers will report quarterly results this week. The S&P managed health care payer index was down 1.2 percent at 390.09 at midday Monday.     Continued ... Quelle "Insurers WellPoint, Humana Profits Fall" : reuters.com Main page for "Insurers WellPoint, Humana Profits Fall"