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 The third-largest U.S. health insurer, which is in the process of
buying rival Humana Inc, also raised its full-year forecast for
adjusted net profit to at least $7.40 per share from $7.20-$7.40.
Memberships in government-sponsored plans have increased as
Obamacare has expanded health insurance coverage to thousands of
uninsured and under-insured U.S. citizens.
Aetna said on Tuesday it continued to experience moderate medical
cost trends during the quarter, which helped improve its medical
benefit ratio to 81.1 percent from 83.1 percent.
The ratio, the percentage of premium income that an insurer spends
on medical claims, is tracked by investors for signs of any increase
in medical spending.
Medical costs are expected to rise as the economy improves and the
rate of overall health spending increases, driving insurers to
consolidate.
Aetna agreed to buy Humana in early July for $37 billion, just weeks
before Anthem Inc and Cigna Corp reached a deal for $47 billion.
Aetna's net profit rose to $731.8 million, or $2.08 per share, in
the second quarter ended June 30, from $548.8 million, or $1.52 per
share, a year earlier.
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Excluding items, the company earned $2.05 per share, beating average
analyst estimate of $1.82 per share, according to Thomson Reuters
I/B/E/S.
Revenue rose 5 percent to $15.24 billion, still short of analyst
expectations of $15.43 billion.
(Reporting by Amrutha Penumudi in Bengaluru; Editing by Don
Sebastian)
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