Elevance Health Inc (NYSE:ELV) stock fell 1.75% (As on January 25, 11:21:30 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. The benefit expense ratio was 89.2 percent in the fourth quarter, an improvement of 50 basis points compared to fourth quarter 2022, and 87.0 percent for the full year, an improvement of 60 basis points year-over-year. The improvement in the quarter and year was driven by premium rate adjustments to cover medical cost trend. Days in Claims Payable was 47.3 days as of December 31, 2023, a decrease of 1.3 days from September 30, 2023, and a decrease of 0.2 days compared to December 31, 2022. The operating expense ratio was 11.8 percent both in the fourth quarter and for the full year of 2023, an increase of 30 basis points as compared to the fourth quarter of 2022 and an increase of 40 basis points year-over-year. The increase in the quarter was driven by an acceleration of investments for growth and the increase for the full year was driven by business optimization charges recorded in 2023.

ELV in the fourth quarter of FY 23 has reported the adjusted earnings per share of $5.62, beating the analysts’ estimates for the adjusted earnings per share of $5.55, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7 percent to $42.5 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 1.51%. The increase in the quarter was driven by higher premium revenue in the Health Benefits segment and growth in pharmacy product revenue in CarelonRx. Health Benefits’ operating revenue was $36.5 billion in the fourth quarter of 2023, an increase of 4 percent compared to fourth quarter 2022. Medical membership totaled approximately 47.0 million as of December 31, 2023, a decrease of 1 percent year-over-year. Carelon operating revenue in the Carelon segments was $12.4 billion in the fourth quarter of 2023, an increase of 14 percent from fourth quarter 2022.

Additionally, as of December 31, 2023, cash and investments at the parent company totaled approximately $1.6 billion. During the fourth quarter of 2023, the Company repurchased 2.0 million shares of its common stock for $929 million, at a weighted average price of $465.63. As of December 31, 2023, the Company had approximately $4.2 billion of Board approved share repurchase authorization remaining.