Solar Life Monetary Inc. highlighted its rising well being and safety enterprise in its second-quarter outcomes, with group dental efficiency within the U.S. driving a lot of the momentum.
Improved dental outcomes, supported by Medicaid repricing, payment revenue and administration actions, helped improve underlying internet revenue on this phase by $21 million in comparison with the identical interval final yr.
Though Solar Life’s dental phase noticed positive factors, together with general progress in Asia, earnings have been partially tempered by a $61 million impairment cost tied to the early termination of a U.S. group dental contract.
The Toronto-based insurer reported earnings of $716 million, up 11 per cent year-over-year, however nonetheless under analyst expectations. Earnings per share have been $1.26, in comparison with the anticipated $1.80, in line with LSEG Knowledge & Analytics.
Within the U.S., Solar Life’s group dental gross sales remained sturdy regardless of general group advantages gross sales declining six per cent on account of decrease medical stop-loss quantity. The dental unit noticed larger business and Medicaid gross sales.
Solar Life says it stays a pacesetter in well being and advantages throughout North America because it continues to construct out its dental portfolio by each private and non-private channels.
‘Vital milestone’ on CDCP
The corporate additionally stated it marked a “important milestone” with the one-year anniversary of administering the Canadian Dental Care Plan (CDCP), notably following the latest growth to incorporate eligible adults aged 18 to 64.
It says 5.2 million Canadians have been authorised underneath the federal plan, which goals to enhance entry to oral well being take care of as much as 9 million residents.
Nevertheless, the corporate didn’t disclose any figures concerning the CDCP’s monetary efficiency.
Learn associated story: Half of advanced dental claims denied: Well being Canada responds to issues over CDCP
