WellPoint, Inc. : GAAP Reconciliations

WellPoint, Inc. GAAP RECONCILIATIONS Fourth Quarter 2011 Earnings Conference Call January 25, 2012

WellPoint, Inc. (the "Company") anticipates that the following non-GAAP measures will be discussed during its earnings conference call scheduled for January 25, 2012, to discuss the Company's financial results for the quarterly period and full year ended December 31, 2011, and its financial outlook for

2012. These non-GAAP measures are not intended to be alternatives to any measures calculated in accordance with GAAP. Rather, these non-GAAP measures are presented in order to aid investors and analysts when comparing the Company's financial results among periods. Management also uses these measures as a basis for evaluating performance, allocating resources, forecasting future operating periods, and in certain cases, setting incentive compensation targets. The information in this document

was prepared as of January 24, 2012, and should be read in conjunction with the Company's fourth

quarter 2011 earnings press release and its SEC reports filed from time to time, including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2010, and its Quarterly Reports on Form 10-Q for the reporting periods of 2011.

1

Adjusted Net Income Per Share - For the three months and full year ended December 31, 2011, compared with the three months and full year ended December 31, 2010

For the three months ended December 31, 2011, net income was $335.3 million, or $0.96 per share, including net investment losses of $11.7 million after-tax, or $0.03 per share. Net income for the three months ended December 31, 2010, was $548.8 million, or $1.40 per share, which included net investment gains of $24.1 million after-tax, or $0.07 per share. Excluding the net investment gains and losses in each period, adjusted net income was $0.99 per share for the three months ended December 31, 2011, a decrease of 25.6 percent compared with adjusted net income of $1.33 per share for the three months
ended December 31, 2010.
For the full year of 2011, net income was $2.6 billion, or $7.25 per share, including net investment gains of $92.2 million after-tax, or $0.25 per share. Net income for full year of 2010 was approximately $2.9 billion, or $6.94 per share, which included net investment gains of $100.2 million after-tax, or approximately $0.23 per share, and an intangible asset impairment charge totaling $13.7 million after-tax, or $0.03 per share. Excluding the items noted for each period, adjusted net income was $7.00 per share for the full year of 2011, an increase of 3.9 percent compared with adjusted net income of $6.74 per share for the full year of 2010.

(In millions, except per share data)

Three Months Ended

December 31, 2011 December 31, 2010 Change

Net income $335.3 $548.8 (38.9%) Add (net of tax):

Net investment losses, net of $6.3 tax benefit $11.7

Subtract (net of tax):

Net investment gains, net of $13.1 of tax expense	-		(24.1)
Net adjustment items	11.7		(24.1)
Adjusted net income	$347.0		$524.7	(33.9%)
Diluted shares	349.6		393.4	(11.1%)
Net income per diluted share	$0.96		$1.40	(31.4%)
Adjusted net income per diluted share	$0.99		$1.33	(25.6%)

Year Ended

December 31, 2011 December 31, 2010 Change

Net income $2,646.7 $2,887.1 (8.3%) Add (net of tax):

Impairment of other intangible assets, net of $7.4 tax benefit - 13.7

Subtract (net of tax):

Net investment gains, net of $49.6 and $54.5 of tax expense, respectively	(92.2)		(100.2)
Net adjustment items	(92.2)		(86.5)
Adjusted net income	$2,554.5		$2,800.6	(8.8%)
Diluted shares	365.1		415.8	(12.2%)
Net income per diluted share	$7.25		$6.94	4.5%
Adjusted net income per diluted share	$7.00		$6.74	3.9%

2

Adjusted Net Income Per Share - Full year 2012 expectation compared with the full years of 2008 - 2011

For the full year of 2012, net income is expected to be at least $7.60 per share. This represents an increase of greater than 8.5 percent from adjusted net income per share of $7.00 for the full year of 2011. This would be the fourth consecutive year of growth in adjusted net income per share.
For the full year of 2011, net income was $7.25 per share, including net investment gains of $0.25 per share. Excluding the net investment gains, adjusted net income was $7.00 per share for the full year of
2011.
For the full year of 2010, net income was $6.94 per share, which included net investment gains of approximately $0.23 per share and an intangible asset impairment charge of $0.03 per share. Excluding these items, adjusted net income was $6.74 per share for the full year of 2010.
For the full year of 2009, net income was $9.88 per share, which included a gain on the sale of the NextRx pharmacy benefit management subsidiaries totaling $4.91 per share, partially offset by net investment losses of $0.53 per share, goodwill and intangible asset impairments of $0.38 per share, and costs for restructuring activities totaling $0.21 per share. Excluding these items, adjusted net income was
$6.09 per share for the full year of 2009.
For the full year of 2008, net income was $4.76 per share, which included net investment losses of $1.45 per share and intangible asset impairments of $0.17 per share, partially offset by the favorable resolution of a tax matter totaling $0.90 per share. Excluding these items, adjusted net income was $5.48 per share for the full year of 2008.

Years Ended Change

2008 2009 2010 2011 2012E* 2012E* vs. 2011

Net income per share

Add / (subtract):

$ 4.76 $

9.88 $

6.94 $

7.25

At least $7.60 Greater than 4.8%

Net investment losses / (gains) 1.45 0.53 (0.23) (0.25) - Impairment of goodwill and other intangible assets 0.17 0.38 0.03 - - Restructuring charges and other items - 0.21 - - - Income tax benefits from the favorable resolution of tax matters (0.90) - - - -

Gain on sale of NextRx business - (4.91) - - -

Adjusted net income per share

$ 5.48 $

6.09 $

6.74 $

7.00

At least $7.60 Greater than 8.5%

* Est imat ed based on project ions as of January 25, 2012

3

Adjusted Operating Cash Flow - For the three months and full year ended December 31, 2011, compared with the three months and full year ended December 31, 2010

Operating cash flow for the three months ended December 31, 2011, was $57.9 million due to the timing of the October 2011 payment from the Centers for Medicare & Medicaid Services ("CMS"), which was received in the third quarter and totaled $596.5 million. Including this payment in the fourth quarter, adjusted operating cash flow was $654.4 million. Operating cash flow for the three months ended December 31, 2010, was $587.0 million.
For the full year of 2011, operating cash flow totaled approximately $3.4 billion. For the full year of
2010, operating cash flow was $1.4 billion and included $1.2 billion of tax payments related to the 2009 sale of the NextRx pharmacy benefit management subsidiaries. Excluding the NextRx tax payments, adjusted operating cash flow was $2.6 billion in 2010.

(In millions)

Three Months Ended

Operating cash flow Add: October 2011 CMS payment	December 31, 2011		December 31, 2010
Operating cash flow Add: October 2011 CMS payment	$57.9		$587.0
Operating cash flow Add: October 2011 CMS payment	596.5		-
Net adjustment items	596.5		-
Adjusted operating cash flow	$654.4		$587.0

Year Ended

December 31, 2011 December 31, 2010

Operating cash flow $3,374.4 $1,416.7

Add:

Tax payments related to the 2009 sale of NextRx - 1,208.0

Net adjustment items - 1,208.0

Adjusted operating cash flow $3,374.4 $2,624.7

4

Operating Gain - Full year 2012 expectation compared with the full year of 2011

For the full year of 2012, operating gain is expected to be approximately $4 billion, which represents an increase of approximately 6 percent from operating gain of approximately $3.8 billion in 2011.

(in millions) 2012E* 2011 Change

Net income	$2,550.0		$2,646.7		(3.7%)
Add:
Income tax expense	1,370.0		1,311.2
Amortization of other intangible assets	235.0		239.4
Interest expense	470.0		430.3
Net other-than-temporary impairment losses recognized in income - 93.3 Subtract:
Net realized gains on investments	-		(235.1)
Net investment income	(620.0)		(703.7)
Net adjustment items	1,455.0		1,135.4

Operating gain $4,005.0 $3,782.1 5.9%

* Est imat ed based on project ions as of January 25, 2012

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