Health insurer UnitedHealth Group Inc., which has operations in Hartford, posted a slightly smaller profit on a decline in investment income and higher costs but still topped analyst expectations.
Enrollment fell in higher-margin employer-sponsored plans but rose in less-profitable government-sponsored and senior citizen plans, the Minnetonka, Minn.-based health insurer said. The company said investment income fell 43 percent to $158 million because of the difficult market. That reduced earnings by six cents per share.
Earnings fell to $984 million or 81 cents per share. That’s down from $994 million or 78 cents per share in last year’s first quarter. The company’s outstanding common shares also decreased by 68 million over the same period.
But revenue rose more than 8 percent to $22 billion from $20.3 billion because of the growth in senior and government plans, as well as acquisitions.
Analysts were expecting earnings of 68 cents per share on revenue of $21.37 billion.
Goldman Sachs analyst Matthew Borsch said in a research note the results appeared “to be stronger than expected across all key metrics.” He added that UnitedHealth’s performance appears to validate his firm’s view of improved industry pricing and cost trends this year. (AP)
