Amerigroup Reports Q4 Net Income of $40.2 Million or $0.79 per Diluted Share Full-Year Net Income of $149.3 Million or $2.85 per Diluted Share

VIRGINIA BEACH, Va. (February 19, 2010) – Amerigroup Corporation (NYSE: AGP) today announced that net income for the fourth quarter of 2009 was $40.2 million, or $0.79 per diluted share, versus $35.9 million, or $0.67 per diluted share, for the fourth quarter of 2008. For the year ended December 31, 2009, the Company’s net income was $149.3 million, or $2.85 per diluted share.

Highlights include:

• Membership was approximately 1.8 million as of December 31, 2009, representing a 13.2%
• increase over the fourth quarter of 2008 and a 0.6% increase compared to the third quarter of
• 2009.
• Fourth quarter total revenue was $1.4 billion; an 18.5% increase over the fourth quarter of 2008 and a 4.5% increase compared to the third quarter of 2009.
• Health benefits expense was 84.6% of premium revenues for the fourth quarter of 2009.
• Selling, general and administrative expenses were 7.7% of total revenues.
• Cash flow provided by operations was $147.0 million for the full year ended December 31, 2009 and $40.4 million in the fourth quarter of 2009.
• Unregulated cash and investments were $232.0 million as of December 31, 2009.
• Medical claims payable as of December 31, 2009 totaled $529.0 million compared to $550.1 million, as of September 30, 2009.
• Days in claims payable was 42, compared to 45 days in the previous quarter.
• The Company repurchased approximately 295,000 shares if its common stock during the fourth quarter for $6.9 million. For the full year, the Company repurchased approximately 2.7 million shares of its common stock for $69.8 million. 

“We are very pleased with our strong finish to the year. Though 2009 included many challenges, we were able to respond effectively,” said James G. Carlson, Amerigroup’s Chairman and Chief Executive Officer. “While total membership exceeded expectations during the year, primarily due to swelling Medicaid eligibility in most states, premium rates were suppressed due to unprecedented state budget deficits. Additionally, medical cost trends were elevated in comparison to historical standards, mostly due to higher outpatient costs and the emergence of a significant, off-season influenza strain (H1N1).” “Our outpatient costs are beginning to show signs of moderation and the impact of the H1N1 virus declined during the fourth quarter,” he continued. “Considering the range of outcomes that were possible in the fourth quarter of 2009, we are encouraged with the way our performance improved.”

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About Amerigroup Corporation

Amerigroup Corporation, headquartered in Virginia Beach, Virginia, improves healthcare access and quality for the financially vulnerable, seniors and people with disabilities by developing innovative managed health services for the public sector. Through its subsidiaries, Amerigroup Corporation serves approximately 1.6 million people in Florida, Georgia, Maryland, Nevada, New Jersey, New Mexico, New York, Ohio, South Carolina, Tennessee, Texas and Virginia.