Coventry Health CEO Wolf Resigns; Former CEO Wise to Succeed
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Copyright 2009 A.M. Best Company, Inc.All Rights Reserved BestWire
January 27, 2009 Tuesday 12:28 PM EST
335 words
Coventry Health CEO Wolf Resigns; Former CEO Wise to Succeed Him
Fran Lysiak
BETHESDA, Md.
Coventry Health Care Inc. said President and Chief Executive Officer Dale Wolf will resign on Jan. 30. The company named former CEO and current chairman Allen Wise as his successor.
Coventry Health (NYSE: CVH) didn't provide a reason for Wolf's departure. Attempts to speak with the company weren't immediately successful.
Wise was Coventry's president and CEO from 1996 through 2004 and served as its non-executive chairman from 2004 until Dec. 10, 2008, when he was named executive chairman.
Wolf joined the Bethesda, Md.-based health insurer in 1996 as its chief financial officer and succeeded Wise as CEO on Jan. 1, 2005.
Coventry is a national managed care company, operating health plans and Medicare Part D prescription drug plans, insurance companies, network rental and worker's compensation services.
During the third quarter, investment losses tied to the global financial crisis dragged down profits for many of the big publicly traded health insurers. The results compounded ailments many companies continue to struggle with enrollment declines as employers lay off workers and high medical costs taking too big a bite into Medicare and commercial health plan premium revenue (BestWire, Nov. 17, 2008).
Coventry's net income declined 49% to $85.5 million, as its profit was hurt by investment impairments and realized losses amounting to $36.2 million, which included holdings in Lehman Bros. and losses on sales of financial sector bonds. Enrollment in its commercial health plans dropped to 2.8 million from 3.1 million in the prior-year period.
The company said that since Wise became executive chairman last month, he devoted much time to conducting a thorough evaluation of the company's operations.
Coventry Health and Life Insurance Co. currently has a Best Financial Strength Rating of A- (Excellent).
On the morning of Jan. 27, Coventry's stock was trading at $15.06 a share, up 6.28% from the previous close.
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
January 28, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
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January 27, 2009 Tuesday 12:28 PM EST
335 words
Coventry Health CEO Wolf Resigns; Former CEO Wise to Succeed Him
Fran Lysiak
BETHESDA, Md.
Coventry Health Care Inc. said President and Chief Executive Officer Dale Wolf will resign on Jan. 30. The company named former CEO and current chairman Allen Wise as his successor.
Coventry Health (NYSE: CVH) didn't provide a reason for Wolf's departure. Attempts to speak with the company weren't immediately successful.
Wise was Coventry's president and CEO from 1996 through 2004 and served as its non-executive chairman from 2004 until Dec. 10, 2008, when he was named executive chairman.
Wolf joined the Bethesda, Md.-based health insurer in 1996 as its chief financial officer and succeeded Wise as CEO on Jan. 1, 2005.
Coventry is a national managed care company, operating health plans and Medicare Part D prescription drug plans, insurance companies, network rental and worker's compensation services.
During the third quarter, investment losses tied to the global financial crisis dragged down profits for many of the big publicly traded health insurers. The results compounded ailments many companies continue to struggle with enrollment declines as employers lay off workers and high medical costs taking too big a bite into Medicare and commercial health plan premium revenue (BestWire, Nov. 17, 2008).
Coventry's net income declined 49% to $85.5 million, as its profit was hurt by investment impairments and realized losses amounting to $36.2 million, which included holdings in Lehman Bros. and losses on sales of financial sector bonds. Enrollment in its commercial health plans dropped to 2.8 million from 3.1 million in the prior-year period.
The company said that since Wise became executive chairman last month, he devoted much time to conducting a thorough evaluation of the company's operations.
Coventry Health and Life Insurance Co. currently has a Best Financial Strength Rating of A- (Excellent).
On the morning of Jan. 27, Coventry's stock was trading at $15.06 a share, up 6.28% from the previous close.
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
January 28, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
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