NU Online News Service, Aug. 8, 2003, 3:32 p.m. EDT – A company that conducts lab tests for life and health insurance underwriting organizations earned higher second-quarter profits.
The company, LabOne Inc., Lenexa, Kan., is reporting $5 million in net income for the latest quarter on $84 million in revenue, up from $3.6 million in net income on $75 million in revenue for the second quarter of 2002.
LabOne gets revenue from analyzing conventional medical lab tests and supporting employer drug-testing programs, but it is best known to insurers for its risk assessment unit, which evaluates applicants for life insurance, disability insurance and other insurance products.
Risk assessment operating earnings increased to $12 million during the second quarter, from $10 million.
Revenue from teleunderwriting was up 68%, LabOne reports.
The number of applicants was down 10%, but LabOne earned more revenue per insurance applicant because insurers asked for more tests, LabOne says.