Aetna's profit declined 15 percent in the second quarter, but it still beat Wall Street expectations. The insurer also raised its earnings forecast for the rest of 2012.
The Wall Street Journal: Aetna' Profit Declines 15 Percent
Aetna Inc. said its second-quarter earnings fell 15 percent because of a smaller benefit from surplus money set aside to cover earlier patient claims, but the managed-care company still topped Wall Street expectations (Kamp, 7/31).
The Associated Press: Aetna 2Q Profit Falls 15 Percent, 2012 Forecast Rises
Aetna Inc.'s second-quarter net income tumbled almost 15 percent compared with last year, when the health insurer caught a big break from lower-than-expected leftover claims. But the latest results still beat analyst expectations, and Aetna raised its 2012 earnings forecast. The higher outlook, announced Tuesday, comes a day after competitor Humana Inc. joined another insurer, WellPoint Inc., in cutting its 2012 earnings forecast after reporting second-quarter results. Those insurers pointed in part to concern over rising medical costs (Murphy, 7/31).
Reuters: Aetna Profit Beats Estimates; Forecast Raised
Aetna Inc reported better-than-expected quarterly earnings on Tuesday and raised its profit forecast for the full year, outperforming some health insurer rivals who have cut their expectations due to rising U.S. medical claims costs. The third-largest U.S. health insurer said more people were using medical services after several years of cutting back on doctor visits due to a weak economy and high unemployment. Aetna said patients were increasingly using outpatient services, while fewer were undergoing more expensive procedures that require a hospital stay (Sherman, 7/31).
Amerigroup's earnings fell also --
The Wall Street Journal: Amerigroup' Net Profit Slips On Higher Costs
Amerigroup Corp.'s second-quarter earnings fell 28 percent as the managed-care company spent more to cover medical claims, though increased membership drove its revenue higher than expected (Warner, 8/1).