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Aetna Profits Rising

Aetna Inc. last week reported a 4 percent increase in earnings in the third quarter on cost cuts and rising medical membership, prompting the company to boost profit forecasts.

The Hartford-based health insurer reported a profit of $496.7 million, or 95 cents a share, compared with earnings of $476.4 million, or 85 cents a share in the year-ago period.

Per-share earnings beat the estimate of 92 cents by analysts polled by Thomson Financial.

The results included about $16 million after tax, or 3 cents a share, that had been set aside for Medicare claims that did not have to be paid.

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Revenue for the quarter that ended Sept. 30 was $6.96 billion, up by 10.5 percent from nearly $6.3 billion in the same period last year. Analysts surveyed by Thomson estimated revenue at $6.97 billion.

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