Insurer Aetna’s 1Q Profit Tumbles 13%
By TOM MURPHY, AP Business Writer | |
Associated Press |
The
Aetna said Thursday last year's first quarter included a gain of
Lower-than-expected growth in health care use has helped insurers for the past several quarters, and it was a factor behind the 73 percent earnings gain Aetna recorded in last year's fourth quarter. But insurers have said they expect use to return to more normal levels this year, as consumers pinched during the recession start to feel comfortable about their finances.
Aetna competitors
Overall, Aetna said net income fell to
Adjusted earnings, which exclude items like capital gains, were
Revenue excluding capital gains climbed 6 percent to
The amount Aetna paid in medical claims, its largest expense, climbed more than 9 percent to
Aetna is the third-largest commercial health insurer based on both enrollment and revenue, trailing WellPoint and
The insurer's medical enrollment, which includes commercial health insurance and people covered by
Aetna reaffirmed its forecast for 2012 adjusted earnings, which exclude capital gains or losses, of about
The company's performance was disappointing because investors had high expectations that it would beat
Aetna shares dropped
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