Cambiar Fund Says Centene’s Pricing Moves Are Helping Steady Profits

Cambiar Opportunity Fund identified Centene as a second-quarter performance contributor, citing improving conditions for health insurers after a difficult period. In its investor letter, the fund said pricing and underwriting actions across the industry have helped stabilize profits.

The fund said elevated medical-use rates had weighed on health insurers’ earnings in recent years. It said Centene and Elevance Health had begun to benefit from the decision to maintain positions in both companies after a difficult 2025.

Cambiar’s analysis estimated that current-year earnings for Centene and Elevance remain 30% to 50% below what they might reach in a normalized environment. The fund also noted that recent stock-price gains had lifted their price-to-earnings ratios.

Centene closed at $62.12 on Sept. 30, according to the article. As of 14:43 UTC on Oct. 1, shares traded at $60.415, down 2.74% since the previous close.

The article reported that Centene had gained about 50.96% year to date through Sept. 30 and had traded between $31.63 and $69.63 over the prior 52 weeks.