Universal American's Favorable Bonus Not Expected To Recur

Citigroup has published a research report on Universal American Corporation UAM in anticipation of the company's 3Q results and prospects. In the report, Citigroup writes "Earnings in 2010 benefited from $0.28 in favorable development that isn't expected to recur, while Universal is also losing at least 60,000 profitable PFFS Medicare members because of the new network requirements. In 2012, while rates will be down, the impact should be relatively modest, and we expect Universal and the rest of the industry to continue to offer very attractive products to seniors relative to the government Medicare program." Citigroup maintains its Buy rating and $19 price target. Universal American closed yesterday at $16.18.