Aetna's 1Q profit rises 4 pct, revenue falls

[April 28, 2011]  HARTFORD, Conn. (AP) -- Aetna says its first-quarter profit rose 4 percent as claims left over from the previous quarter came in lower than the health insurer expected. But it says revenue and enrollment dropped.

The insurer also says it has agreed to buy Prodigy Health Group, a large administrator of self-funded health care plans, for about $600 million. New York-based Prodigy operates in 15 states.

The Hartford, Conn., insurer said Thursday its net income rose to $586 million, or $1.50 per share, in the three months that ended March 31. That's up from $562.6 million, or $1.28 per share, a year ago. Revenue fell 3 percent to $8.38 billion, and enrollment dropped 5 percent.

Analyst forecast lower behind 96 cents per share on $8.32 billion in revenue.

Aetna is the third largest commercial health insurer behind WellPoint and UnitedHealth.

[Associated Press]

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