Elevance (ELV) Q2 2026: MLR Hits 89.7%, Net Income Falls 16%
Elevance Health's pricing still has not caught up with its medical cost trend. The benefit expense ratio reached 89.69% in the second quarter of 2026 \u2014 the highest second-quarter reading in at least five years and 337 basis points above the 86.32% posted in Q2 2024 \u2014 while premiums, the company's largest revenue line, grew by $8 million on a base of $41.3 billion, or 0.02%. Shareholders' net income fell 16.1% to $1,463 million even though total revenues rose. What holds the income statement together is not underwriting: it is $1,195 million of favorable prior-year reserve development booked in the first half, a 44.9% jump in second-quarter net investment income, and a 3.4% smaller diluted share count. Management read the quarter more favorably, raising full-year guidance on July 15 \u2014 a divergence this analysis returns to in Section 2-2.
- Consolidated Balance Sheet
1-1. Principal asset movements
