UnitedHealth's 1Q profit climbs, membership up

[April 20, 2010]  MINNEAPOLIS (AP) -- Insurer UnitedHealth Group Inc. said Tuesday that its first-quarter profit rose on better-than-expected membership and services growth, easily topping Wall Street's expectations.

The largest publicly traded health insurer based on revenue also gave a 2010 earnings and revenue forecast above analysts' estimates.

UnitedHealth is the first big health insurer to report its earnings every quarter, and many view it as a bellwether for the sector.

The company earned $1.19 billion, or $1.03 per share, for the three months that ended March 31. That's better than the $984 million, or 81 cents per share, reported a year ago.

Revenue climbed 5 percent to $23.19 billion from $22 billion.

Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, expected a much smaller profit of 69 cents per share on revenue of $22.76 billion.

"Each quarter we are performing more strongly, improving in consumer and care provider satisfaction, delivering a steady stream of innovation, and effectively and appropriately controlling operating and medical costs," President and CEO Stephen J. Hemsley said in a statement.

UnitedHealth reported increased enrollment in Medicare Advantage and its active Medicare supplement products. The insurer also reported growth in its stand-alone Part D prescription drug plans, with 4.5 million people participating in the plans at quarter's end, an increase of 240,000 people from a year earlier.

The company said its Medicaid programs added 145,000 people in the first quarter.

Minnetonka, Minn.-based UnitedHealth anticipates a 2010 profit of $3.15 to $3.35 per share on revenue of about $92 billion. Wall Street predicts earnings of $3.08 per share on revenue of $90.76 billion for the year.

Insurers Humana Inc., WellPoint and Aetna Inc. will report their earnings later this month, with Cigna Corp. providing its results in May.

[Associated Press]

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