Aetna said its fourth-quarter profits dipped by more than a third as medical costs and other expenses outpaced revenue growth.
But the Hartford health insurer finished 2014 with higher profits and revenue than the year before.
For the fourth quarter, Aetna booked net income of $232 million, or 65 cents a share, down from $368.9 million, or $1, in the prior-year quarter.
Fueled by healthcare premiums, revenue grew 12 percent, or $1.59 billion, to $14.77 billion,
But higher benefits and expenses erased that gain, increasing by $1.69 billion over the year.
For 2014, the company booked profits of $2.04 billion, or $5.68 per share, up from $1.91 billion, or $5.33, in 2013. Revenue increased by nearly 23 percent, to $58 billion.
Aetna served 23.5 million medical members in 2014, which was up 6 percent from the year prior.
The company raised its operating-earnings-per-share outlook for 2015 to at least $7, up from a previous projection of at least $6.90.
