National Anthem: Once just the Indiana Blue Cross and Blue Shield plan, Anthem Inc. is now the fifth-largest publicly held health-benefits company, with 7.9 million members.

AuthorMcKimmie, Kathy
PositionIndiana Business Magazine Cover Story

For most investors, the best thing that can be said about 2001 is that it's over. "Stocks finished their worst two-year period in 23 years," reported The Wall Street Journal.

All the more reason to take note of Anthem's successful initial public offering, Indiana's largest ever, and the largest health-benefits-company IPO in U.S. history, raising more than $2 billion. It instantly moved Anthem to the No. 2 public company spot in Indiana--behind Eli Lilly & Co.

With the increasing visibility and 15 stock analysts on its tail since the October 30 offering, you'd think the routine at the once-private company would change. But, says president and CEO Larry Glasscock, "nothing's changed. Anthem's the same today as when we were a mutual company--absolutely identical to pre-IPO. The fact is, unless you serve your customer well, you can't serve your shareholders."

The roots of its IPO can be traced to 1993 and the company's first merger with Kentucky Blue Gross and Blue Shield. At the time, and until 1996, Anthem was named The Associated Group. Over the next seven years, it would acquire six more Blues, establishing three strong geographical regions of operation before converting the mutual insurance company to a stock company and dispersing the value of the company to its member/owners.

Guiding the, company through its phenomenal growth period was strategist L. Ben Lytle, the disarming Texan who served as president and CEO for 10 years, 1989 to 1999. He added chairman to his title in 1997, the same time he announced he would retire in two years.

Lytle hired Larry Glasscock as senior executive vice president and COO in 1998, after working with him on the board of the Blue Gross Blue Shield-Association, the Blues' licensing body. Glasscock was president and CEO of Blue Cross and Blue Shield of National Capitol Area in D.C. from 1993 to 1998, and oversaw its affiliation with Blue Cross and Blue Shield of Maryland. Previously, he was a banking executive.

Was he the heir apparent? "No," Glasscock insists. "The one guarantee was to be interviewed by the board as a possible successor." But a year later he was appointed president and COO, and in October 1999 he was tapped for CEO.

David Frick joined Anthem in 1995 as executive vice president, chief legal and administrative officer, relinquishing his seat on Anthem's board. Previously, he had served as deputy mayor of Indianapolis (1977-1982) under William Hudnut, and was a partner with the Indianapolis-based law firm Baker & Daniels from 1982 until 1995, serving five years as managing partner. Although Frick's many responsibilities include oversight of human resources-and he...

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