Insurer UnitedHealth Group Inc., with operations in Hartford, said Tuesday that its first-quarter profit rose on better-than-expected membership and services growth, easily topping Wall Street’s expectations, The Associated Press reports.
The largest publicly traded health insurer based on revenue also gave a 2010 earnings and revenue forecast above analysts’ estimates.
Minnetonka, Minn.-based UnitedHealth is the first big health insurer to report its earnings every quarter, and many view it as a bellwether for the sector.
Insurers Aetna Inc., Humana Inc. and WellPoint, parent of Anthem Blue Cross of Connecticut, will report their earnings later this month, with Cigna Corp. providing its results in May.
UnitedHealth company earned $1.19 billion, or $1.03 per share, for the three months that ended March 31. That’s better than the $984 million, or 81 cents per share, reported a year ago.
Revenue climbed 5 percent to $23.19 billion from $22 billion.
Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, expected a much smaller profit of 69 cents per share on revenue of $22.76 billion.
“Each quarter we are performing more strongly, improving in consumer and care provider satisfaction, delivering a steady stream of innovation, and effectively and appropriately controlling operating and medical costs,” President and CEO Stephen J. Hemsley said in a statement.
UnitedHealth reported increased enrollment in Medicare Advantage and its active Medicare supplement products. The insurer also reported growth in its stand-alone Part D prescription drug plans, with 4.5 million people participating in the plans at quarter’s end, an increase of 240,000 people from a year earlier.
The company said its Medicaid programs added 145,000 people in the first quarter.
UnitedHealth anticipates a 2010 profit of $3.15 to $3.35 per share on revenue of about $92 billion. Wall Street predicts earnings of $3.08 per share on revenue of $90.76 billion for the year.
