mainly due to high claims and low premiums. why are the stocks surging? because health insurers have gotten profits elsewhere. specially in the past few years, also in medicare and less exposure to obamacare. more companies pull out of the exchange each year boosting the industry es net income 46% in 2016 alone. finally, those cost sharing subsidies payouts? not exactly. they reimburse insures for lowering deductibles. it s hard to look at the prof numbers and feel bad for the insurance frindustry. it s impossible. they just aren t making money. they are a for-profit company. if they re not making obscene profits they re pulling out. they re not making any profits.