UnitedHealth's 3Q profit rises 23 percent
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Insurer UnitedHealth Group said Tuesday its third-quarter profit rose 23 percent, trumping Wall Street expectations as claims leftover from previous quarters once again came in lower than expected.
The Minnetonka, Minn., insurer says it earned $1.28 billion, or $1.14 per share, in the three months that ended Sept 30. That's up from the $1.04 billion, or 89 cents per share, it earned in the same quarter last year.
Revenue was up 9.1 percent to $23.67 billion. Four company units - UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, Ingenix and Prescription Solutions - posted double-digit revenue gains in the quarter.
Analyst polled by Thomson Reuters forecast earnings of 84 cents per share on about $23 billion in revenue.
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During the quarter, the company realized $230 million in favorable prior-period reserve development, including $80 million from prior years, compared with $190 million in the third quarter of 2009, $100 million of which related to prior years.
UnitedHealth is the largest publicly traded health insurer based on total revenue and the second-largest based on enrollment, trailing only WellPoint. It is the first big health insurer to release its earnings every quarter, and many analysts and investors see it as a bellwether for the sector.
Looking ahead, UnitedHealth expects to earn $3.85 to $3.95 per share for its full year 2010 on revenue of about $94 billion. On average, analysts expect earnings per share of $3.60 on revenue of about $92.93 billion.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
