Amerigroup Reports Q4 Net Income of $40.2 Million or $0.79 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 $550.1million, 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 of 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.

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