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Medial Falls Most in 7 Months After 2nd-Quarter Loss

By Paulo Winterstein

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1FOdvQ9fV80

Aug. 7 (Bloomberg) — Medial Saude SA, Brazil’s third- largest health care plan provider, fell the most in seven months in Sao Paulo trading after reporting second-quarter loss.

Medial fell 7.5 percent to 15.71 reais, the steepest decline since Jan. 2.

The company reported a net loss of 7.6 million reais ($4.8 million), compared with an average expectation of 13.2 million reais profit, based on three estimates compiled by Bloomberg.

Revenue from premiums of 458.9 million reais was “weak,” in line with what was expected by Banco Santander SA analyst Daniel Gewehr.

“Adjusted net income of 10.8 million reais was 7.7 percent lower than the 11.7 million reais we forecast, basically due to a higher Medical Loss Ratio” and higher general and administrative expenses, Gewehr wrote in a note.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.

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