Blue Cross Reports Income Doubles for 2nd Quarter

Blue Cross of California, the state’s largest health insurer, reported net income of $40.3 million in the second quarter, more than double the $19.9 million it earned a year earlier.

The gains technically are not profits because the Woodland Hills-based concern is a nonprofit organization. Regardless, the gains enable Blue Cross to add larger sums to its reserves against future claims and underscore the company’s continuing rebound from the major losses it suffered in the mid- to late 1980s.

The earnings gain in the quarter that ended June 30 came on a 12% increase in Blue Cross’ earned premiums--an insurance industry gauge of total revenue--to $589.6 million from $527.8 million.

For the first half of 1991, Blue Cross earned $85.7 million, up 95% from $43.9 million a year earlier, and its six-month earned premiums rose 11%, to $1.15 billion from $1.04 billion.