As health care undergoes historic changes, WellPoint continues to adapt. Guided by new leadership, we are focused on the core business model of serving our customers—affiliated health plan members, employer groups, provider partners and federal and state governments.

NEW LEADERSHIP

In 2013, WellPoint’s board of directors named Joseph Swedish as the company’s new chief executive officer. A health care leader with more than 40 years of experience, Swedish has an extensive track record of leading large, complex health care organizations through challenges in difficult market and regulatory environments. He is committed to ensuring WellPoint remains a market leader, improving shareholder value and refining the company strategy.

STRATEGIC INVESTMENTS

We have entered a dynamic period in health care. The Affordable Care Act is presenting challenges and opportunities for the industry, and WellPoint has positioned itself to embrace this evolution by preparing and investing for future growth across our company. We have invested more than $150 million preparing for the new Health Insurance Marketplace, studied preferences of tens of thousands of consumers and businesses, and partnered with thousands of retail locations, local agents and online channels to expand information and access. Our geographic reach, which spans 14 states, includes more uninsured people than any other health benefits company, particularly in rural areas, which is essential to access.

An integral component of our strategy includes the continually growing public and government programs market. WellPoint subsidiary Amerigroup is now a fully integrated part of the company’s Government Business Division and has bolstered its footprint. In 2013, it expanded its Medicaid business in Florida, Georgia, Kansas, New Jersey, Tennessee and Washington and our Medicaid business now serves nearly 4.5 million beneficiaries in 19 states, making WellPoint the nation’s leading provider of health care solutions for public programs. Roughly two-thirds of the population in the primary states in which we operate have incomes that make them eligible for either Affordable Care Act subsidies or Medicaid. Our investment in Amerigroup and its growth positions WellPoint for success in this market.

Additionally, WellPoint is one of the largest benefit providers for seniors, and our National Government Services subsidiary continues to be a trusted partner of the government, providing support services for the federal Medicare program. While faced with challenges of Medicare reimbursement, we are encouraged by the increasing number of baby boomers aging into the Medicare system.

SOLID FINANCIAL PERFORMANCE

In 2013, WellPoint reported four solid quarters of earnings and a continuation of positive business momentum developed across the organization. Operating revenue increased by $9.7 billion, or 16 percent, during 2013 to $70.2 billion. Additionally, earnings per share grew slightly on a GAAP basis and by 13 percent on an adjusted basis to $8.52.* Our 2013 operating revenue and adjusted earnings per share results are both all-time records for WellPoint. Our strong presence in government business is also key to accelerating our core earnings power. Annual government business revenues have grown from $22 billion in 2012 to approximately $31 billion in 2013, and now represent almost 45 percent of our consolidated revenue base.

The strong financial foundation, an expanded government business footprint, and a leader embracing the challenges of a changing health care industry have positioned WellPoint for continued success as America’s valued health partner.

*Refer to form 10-K for reconciliation of adjusted to GAAP EPS.