Despite a tumultuous year, Blue Cross Blue Shield of Massachusetts is reporting high earnings in the second quarter. Thus far, 2011 has proven to be relentless in the number of natural disasters occurring throughout the U.S. While speculations regarding the losses faced by insurance companies have been somewhat grave, the fact of the matter is that many insurers are earning more than they did before the disasters. There can be no doubt that these insurers, most of whom operate in the property market, have, indeed, suffered losses, but their ability to bounce back from disaster is nothing short of uncanny.
Blue Cross Blue Shield, the largest commercial health insurer in the state, has reported a net income of more than $56 million since June 30 of this year. Last year, the insurer posted losses amounting to $14 million for the same period, showing that, despite 2010’s notoriety for vicious natural disasters, the company has been doing very well in the wake of recent disasters.
The company has been faring well in the investment market as well. The economic turmoil of previous months had many casting doubt on the viability of investments made by the insurer, but such investments now seem to be paying off. The company has reported more than $30 million in earnings from their investments throughout the second quarter.
The news bodes well for those investing in the insurer, but it may translate into a modest reprieve in rate increases for consumers. Given the company’s earnings, the rate increases it pursues may be less steep than those in the past, according to the Massachusetts Division of Insurance.