Profit at Aetna and Allstate Tops Analysts’ Expectations
REUTERS |
Two big insurance companies -- Aetna and
Aetna raised its profit forecast for the full year, outperforming some rival health insurers that cut their earnings expectations because of rising medical claims costs.
Aetna said more people were using medical services after several years of cutting back on physician visits because of the weak economy and high unemployment. The health insurer said patients were increasingly using outpatient services, while fewer were undergoing more expensive procedures that required a hospital stay.
Rising costs have prompted other health insurers, notably WellPoint and
By contrast, Aetna said its membership rose by more than 100,000 medical members from the first quarter, ending the second quarter at 18 million. It predicted continued membership growth for the year and raised its full-year earnings forecast to a range of
''It seems like Aetna is doing well in terms of understanding costs,'' said
Aetna's chief financial officer,
Aetna reported second-quarter net income of
Quarterly revenue rose to
Quarterly revenue rose to
Section: B Page: 6 Column: 0 Desk: Business/Financial Desk Length: 404 words
Copyright: | (c) 2012 The New York Times Company |
Source: | New York Times Digital |
Wordcount: | 392 |
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