Aetna’s third quarter results show a 5.7 decline in net income for the third quarter. The figures were affected by increased investment in the company’s growth initiatives that outpaced the increase in operating revenue.
Operating revenues were $15 billion compared with $14.7 billion a year. Net income for the third quarter was $560.1 million, or $1.59 per share, compared to $594.5 million, or $1.67 per share, a year earlier.
“Aetna delivered another quarter of strong results, continuing our momentum from the first half of the year,” said Mark T. Bertolini, Aetna chairman and CEO. “Based on these results, we are raising our projection on full-year 2015 operating earnings per share for the fourth time this year to a range of $7.45 to $7.55 per share from our prior projection of at least $7.40 per share.”
Net income was up in Aetna’s healthcare segment from $585.4 million compared to $576.7 million. Net income was down sharply in its group insurance segment at $22.8 million compared with $52.6 million a year earlier.
“We are quite pleased with our third-quarter results, which continue to be supported by strong cash flow and operating margins,” said Shawn M. Guertin, Aetna executive vice president and CFO in a statement. “Our strong underwriting results benefited from disciplined pricing and continued moderate medical cost trends.”
