BETHESDA, MD - Coventry Health Care reported consolidated operating results for the quarter ended September 30, 2009. Operating revenues totaled $3.4 billion for the quarter with GAAP net earnings of $70.6 million, or $0.48 earnings per diluted share (EPS). Excluding the impact of the First Health Services Corporation (FHSC) divestiture in the third quarter, which resulted in a net charge of $26.7 million, or $0.18 per diluted share, adjusted net earnings were $97.3 million, or $0.66 per diluted share.

Excluding the impact of the FHSC divestiture, the Company is increasing its full year 2009 adjusted EPS guidance to a range of $2.01 to $2.03, an increase of $0.12 from the midpoint of the prior EPS range of $1.85 to $1.95. GAAP EPS for the full year is now expected to be in a range of $1.45 to $1.47 as the Company has recorded a largely non-cash full year charge of $0.56 per diluted share as a result of the FHSC divestiture.

Third Quarter Consolidated Highlights

* Revenues from continuing operations increased 17.7% from the prior year quarter
* Continued growth in Medicare products

* Medicare Coordinated Care Product (CCP) membership growth of 38% from the prior year quarter
* Medicare Part D membership growth of 81,000 from the prior quarter

* Health plan commercial group risk medical loss ratio of 82.1%
* GAAP cash flows from operations were $314.3 million
* Excellent liquidity position

* Approximately $570 million of deployable free cash at the parent at quarter-end
* Debt repayment of $98 million during the quarter

* Share buyback of 1.5 million shares at the end of the quarter
* Investment portfolio in a net unrealized gain position at quarter-end

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