Two former top officers of collapsed medical-malpractice insurance company Reciprocal of America are scheduled for sentencing in June for their roles in one of Virginia's biggest insurance fraud cases. Former chief executive Kenneth R. Patterson and former executive vice president Carolyn Hudgins pleaded guilty in U.S. District Court this week to conspiracy to commit insurance fraud and other charges. The company was placed in receivership in January 2003 with unpaid liabilities of $450 million. In Alabama, as many as 800 physicians and medical personnel and 46 hospitals lost malpractice coverage in 2003 because of Reciprocal's problems.
EARNINGS
Cigna, one of the largest U.S. health insurers, said fourth-quarter earnings nearly doubled to $557.4 million as it made more from its health care segment and sold its retirement benefits business. Revenue declined 4 percent, to $4.34 billion.
A Wal-Mart in Canada that employees Pierre Martineau, left, and Patrice Bergeron, helped to unionize, will close in May after the retail giant failed to reach what would have been its first-ever union contract. A Wal-Mart spokesman said demands from union negotiators would have made it difficult for the store to remain profitable. Some workers said they believed it was closing because of their agreement to join the union.
(Jacques Boissinot -- AP)
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For the year, Cigna's earnings more than doubled to $1.44 billion. Revenue declined 3 percent, to $18.18 billion. Cigna said it has begun accounting for employee stock options at fair market value, which reduced earnings in the most recent quarter by $9 million.
MetLife, the largest U.S. life insurer, said fourth-quarter profit fell 27 percent, to $511 million, as the value of the dollar hurt hedges it bought to manage foreign currency risks. Revenue rose 6 percent, to $10.06 billion. For the full year, earnings rose 24 percent, to $2.76 billion, and revenue rose 10 percent, to $39.01 billion.
American International Group said fourth-quarter profit rose 11.5 percent, to $3.02 billion. Revenue rose 16 percent, to $25.76 billion. For the year, AIG reported record net income of $11.05 billion, an increase of 19 percent from 2003. Revenue for 2004 was $98.61 billion, while net premiums totaled $41.9 billion.
Whole Foods Market said earnings for the first quarter rose sharply, driven by solid growth in same-store sales. Profit jumped 27 percent, to $49.1 million; sales increased 22 percent, to $1.37 billion.
Adolph Coors said fourth-quarter profit rose 54 percent, to $55.7 million. Revenue rose 10 percent, to $1.13 billion. Coors also closed its $3.4 billion acquisition of Canadian brewer Molson to form Molson Coors Brewing, the world's fifth-largest brewer.
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers.
