UnitedHealth Group boosts outlook on profit jump

UnitedHealth Group solidly beat expectations for first quarter earnings as the nation's largest health insurer added more than 1 million subscribers during the first three months of the year.

Growth at the company's UnitedHealthcare insurance division came in part from more membership in Medicare Advantage health plans for seniors.

Revenue during the first quarter grew faster at Optum, the company's division for health care services including medical clinics, IT and data consulting and pharmaceutical benefits management.

Overall, the Minnetonka-based health care giant increased its earnings outlook for the year, even as UnitedHealth Group continues to plan on significant expenses from the COVID-19 pandemic.

"The unique combined capabilities of Optum and UnitedHealthcare and the unwavering commitment of our people continue to help advance the way care is delivered," Andrew Witty, chief executive of UnitedHealth Group, said in a statement.

Thursday's quarterly earnings release was the first for the company since Witty was named chief executive in February.

For the quarter, UnitedHealth Group saw a profit of $4.86 billion on $70.2 billion in revenue. The earnings were up about 40% from $3.47 billion during the same period last year, while revenue grew by 9%.

Earnings per share of $5.31 beat by 93 cents the expectations of analysts surveyed by Refinitiv.

UnitedHealth now expects adjusted earnings for the year of $18.10 to $18.60 per share, up from the previous range of $17.75 to $18.25.

Following last year's annual open enrollment period, membership in the company's Medicare Advantage health plans grew by about 625,000 people, or roughly 11%. The insurance business also won a contract to manage care in Oklahoma health programs for lower-income residents.

Membership in UnitedHealthcare health insurance products in the U.S. now stands at 44 million people.

UnitedHealth Group is Minnesota's largest company by revenue.

This is a developing story. Check back for updates.

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck

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