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Elevance (ELV) to Divest Life & Disability Business to StanCorp

Elevance Health, Inc.'s ELV life and disability business is set to be acquired by StanCorp Financial, a private benefits provider company. This transaction will combine the life and disability businesses of ELV and StanCorp, both having longstanding expertise in employee benefits and a common customer focus. The companies will also enter a product distribution partnership.

This partnership will bring a trusted life and disability partner for Elevance’s customers.ELV’s mission is to improve the health of humanity, and it believes in working together to achieve it. The company strives for opportunities to maximize the power of partnerships to deliver on this mission. As ELV sells its life and disability business to StanCorp, its customers benefit from StanCorp’s expertise in group benefits business and a strong geographic presence.

ELV’s government business contributed 62.2% to its total revenues in 2022. With the sale of the life and disability business, ELV’s resources can be focused on driving growth from its more profitable operations. This will help ELV align its investments to optimize the core business.

Moreover, the company will experience lower expenses as it will save costs to acquire new customers for its life and disability business.This will further boost its bottom line in the future. The cash generated by this transaction will be available for ELV to invest in growth opportunities for the future development of its business.

Elevance Health believes StanCorp will continue to offer its customers best-in-class benefits and services after closing the deal.The financials details of this transaction are yet to be disclosed.

Price Performance

Shares of Elevance Health have 1% in the past 6 months compared with the industry’s decline of 0.2%.

Zacks Investment Research
Zacks Investment Research

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Zacks Rank & Other Key Picks

Elevance Health currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the Medical Services industry are ICON Public Limited Company ICLR, GeneDx Holdings Corp. WGS and MDxHealth SA MDXH. ICON Public sports a Zacks Rank #1 (Strong Buy), while GeneDx and MDxHealth carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of ICON Public outpaced estimates in all the last four quarters, the average surprise being 2.3%.The Zacks Consensus Estimate for ICLR’s 2023 earnings suggests an improvement of 7.9%, while the same for revenues indicates growth of 4.9% from the corresponding year-ago reported figures. The consensus mark for ICLR’s 2023 earnings has moved 1.1% north in the past 60 days.

GeneDx’ bottom line outpaced estimates in two of the trailing four quarters while it missed the other two. The average of earnings surprises is 3.5%.

The Zacks Consensus Estimate for WGS’s 2024 sales indicates a 23.8% rise from the prior-year estimated figures.

The bottom line of MDxHealth outpaced estimates in two of the trailing four quarters, while it missed in the other two, the average surprise being 27%.

The Zacks Consensus Estimate for MDXH’s 2023 revenues indicates growth of 77.5% from the corresponding year-ago reported figures.

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