-- In January 2008, AMERIGROUP received a fully executed amendment to its
contract with Georgia, increasing the weighted average rate by 4.5%,
effective July 1, 2007. The impact of this rate increase is not
included in the 2007 results and will be reflected in the first quarter
-- AMERIGROUP is increasing the range of its 2008 annual earnings estimate
to $2.58 to $2.73 per diluted share from the previous range of $2.45 to
$2.60 per diluted share to reflect the retroactive component of the
July 1, 2007 rate increase for Georgia.
-- The Board of Directors approved a stock repurchase program for up to
one million shares primarily for the purpose of mitigating dilution
from stock option exercises and stock grants.
"Our strong fourth quarter results capped off an excellent year for AMERIGROUP. We have applied a disciplined approach to new markets and products and effectively managed our mature markets, all of which position us well to benefit from future growth," said James G. Carlson, AMERIGROUP's President and Chief Executive Officer. "Fundamentally, we feel very good about our business and our outlook for 2008 remains positive."
Total revenues for the fourth quarter of 2007 increased 33.0% to $1.1 billion compared with $809.7 million in the fourth quarter of 2006. Sequentially, total revenues increased $44.0 million, or 4.3%, compared with the third quarter of 2007. The sequential increase primarily reflects rate increases received in Texas and Florida in September.
For the year ended December 31, 2007, total revenues increased 39.2% to $3.9 billion from $2.8 billion for the year ended December 31, 2006, reflecting 38.5% organic premium revenue growth. The retroactive rate increase in Georgia is not included in the 2007 results.
Fourth quarter investment income and other revenue
|SOURCE AMERIGROUP Corporation|
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