Health insurers' (6%) profits 35th of 53 (Clorox, 8.7% - KFC, Pizza Hut, Taco Bell 8.5%)

Miami Herald ^ | 10/26/09 | CALVIN WOODWARD

[Libloather]

FACT CHECK: Health insurers' profits 35th of 53
By CALVIN WOODWARD
Associated Press Writer
Posted on Monday, 10.26.0

**SNIP**

THE NUMBERS:

Health insurers posted a 2.2 percent profit margin last year, placing them 35th of 53 industries on the Fortune 500 list. As is typical, other health sectors did much better - drugs and medical products and services were both in the top 10.

The railroads brought in a 12.6 percent profit margin. Leading the list: network and other communications equipment, at 20.4 percent.

HealthSpring, the best performer in the health insurance industry, posted 5.4 percent. That's a less profitable margin than was achieved by the makers of Tupperware, Clorox bleach and Molson and Coors beers.

The star among the health insurance companies did, however, nose out Jack in the Box restaurants, which only achieved a 4 percent margin.

UnitedHealth Group, reporting third quarter results last week, saw fortunes improve. It managed a 5 percent profit margin on an 8 percent growth in revenue.

Van Hollen is right that premiums have more than doubled in a decade, according to a Kaiser Family Foundation study that found a 131 percent increase.

But were the Bush years golden ones for health insurers?

Not judging by profit margins, profit growth or returns to shareholders. The industry's overall profits grew only 8.8 percent from 2003 to 2008, and its margins year to year, from 2005 forward, never cracked 8 percent.

The latest annual profit margins of a selection of products, services and industries: Tupperware Brands, 7.5 percent; Yahoo, 5.9 percent; Hershey, 6.1 percent; Clorox, 8.7 percent; Molson Coors Brewing, 8.1 percent; construction and farm machinery, 5 percent; Yum Brands (think KFC, Pizza Hut, Taco Bell), 8.5 percent.

[Libloather]

There is no crisis. The RATS would be better off taking over KFC, Pizza Hut and Taco Bell. (Nothing racial intended.)

[21twelve]

I had an econ teacher years ago that said if you can’t turn a 10% profit you probably are in the wrong line of work. (Not sure if he took into account recession years or not).

I wonder what the recent bank profits are? I know whenever folks would complain about “Big Oil” profits I would point them to the “Big Banks” - which had higher profits. (IIRC around 35% or so a couple of years ago).

[neverbluffer]

How come the liberals never seem to demonize their constituency base, such as attorneys, unions, etc.

I bet a law firm makes far more than 6% ON A CLASS ACTION LAWSUIT.

I bet SEIU, although a non profit, probably retains more than 6%.

Hypocrisy!!!

[21twelve]

From a search:

“One Los Angeles law firm has placed its bet on the profitability of class action pension lawsuits filed on behalf of employees—and so far the strategy is paying off.

Liner Yankelevitz Sunshine & Regenstreif LLPLLP - with 92 lawyers and average profits per partner of over $750,000....”

[wafflehouse]

KFC, Pizza Hut, Taco Bell 8.5%

can that be right? KFC and Pizza Hut seem to charge pretty excessive prices for their food i thought. Pizza and Fried Chicken are cheap to make.