This week I'm buying stock in a US health insurance provider which has one million members and reported over USD 6.6bn in direct and assumed policy premiums last year. It currently covers families and individuals across 20 states.
Regular readers will know I like the healthcare sector at the moment, and the US healthcare market is truly massive. It is a market that is changing quickly, with more and more US workers now entering the so-called gig economy. Living in the US, this still means they need health insurance and they have no employers to cover them.
The ACA (Affordable Care Act) marketplace for healthcare insurance in the US is accelerating quickly, and is considered to be the fastest growing segment in the North American health insurance market, with very stable dynamics. Health insurance is not something Americans can really afford to compromise on, regardless of where the US economy is headed.
This company is leveraging technology to challenge what it calls the "status quo" in the US healthcare system. A solid set of Q1 results showed year-over-year improvement across all its core metrics and positive net income. Total revenue came in at USD 2.1bn for the quarter, a 46% gain on a year-over-year basis.
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