Aetna Posts Higher 2nd-Quarter Profit On Strong Health Segment

Paterniano Del Favero
Agosto 3, 2017

No. 3 USA health insurer Aetna Inc reported a much higher-than-expected quarterly profit on Thursday on strong cost controls and improved performance in its core businesses.

Second-quarter net profit rose to $1.20 billion, or $3.60 per share, from $791 million, or $2.23 per share, a year earlier. The business unit includes insured and self-insured medical, pharmacy, dental and behavioral health products and services.

Aetna on Thursday also raised its full-year earnings outlook, lifting its adjusted earnings on a per-share basis by 60 cents at the midpoint to $9.45 to $9.55; analysts projected $8.89 a share.

"Our core businesses continued to outperform during the second quarter, carrying forward positive momentum from the start of the year", said Shawn Guertin, Aetna's chief financial officer.

Shares of Aetna gained 2.6 percent to $158.79, helped by stronger results not only for individual insurance but in its small and large business division and in its government-backed Medicaid and Medicare segments.

In May the company said it would exit the 2018 Obamacare individual insurance market in Nebraska and DE - the two remaining states it offered the plans -after President Donald Trump vowed to get rid his predecessor's healthcare law. Adjusted revenue came in at about $15.50 billion ahead of estimates of $15.39 billion.

Aetna has shrunk its individual membership to 240,000 at the end of the second quarter from more than 1 million past year, citing losses on high member costs, and it will close out its individual Obamacare plans by the end of 2017.

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