Hartford health insurer Aetna Inc. says better premium pricing and containment of care costs pushed second-quarter profits 9 percent higher to well above a half-billion dollars despite a falloff in membership.
In the three months ended June 30, Aetna netted $536.7 million, or $1.39 a share, up from $491 million, or $1.14 a share, earned the same period a year ago.
The results shattered Wall Street analysts’ early earnings estimate of $1.07 in the quarter.
Second-quarter revenues fell 2 percent to $8.3 billion vs. $8.5 billion last year.
“Three main factors account for our success: disciplined pricing and medical cost management; lower than anticipated utilization of health care services by our members; and strong cash flow generation,” Aetna Chairman and CEO Mark Bertolini said in a statement Wednesday. “The result has been better-than-projected financial results in the first half of 2011.”
Aetna now has revised in full year outlook for operating earnings per share of $4.60 to $4.70, Bertolini said.
