Aetna, Inc., the third-largest health insurer in the U.S., has reported a second-quarter operating profit of $722.1 million, or $2.05 a share, a per share increase of 21 percent from the 2014 profit of the same quarter, according to a press release issued by Aetna.
Bloomberg adds that analysts were estimating an operating profit of $1.82 a share on average.
A strong revenue, which is supported by higher Health Care premium yields, as well as membership growth in Aetna's Government business, are credited for the company's increase in operating profits, according to the press release.
The company has reported in the press statement about its operating revenue of $15.1 billion in the quarter, a 4 percent increase from last year's result.
Shawn M. Guertin, executive vice president and Chief Financial Officer (CFO) at Aetna, said in the press release that they are pleased with the company's operating results in the second quarter, which is "supported by strong revenue growth, cash flow and operating margins."
"Our second-quarter total medical benefits ratio improved year over year to 81.1 percent, a very strong result that benefited from continued moderate medical cost trends," he said.
Guertin added that the company's government business had another outstanding quarter.
"Outperformance in our Medicare and Medicaid lines more than offsetting the impact on our commercial business of the recent federal calculations on health care reform risk adjustments," he said.
Reuters adds that the increase in membership of government-sponsored plans is due to Obamacare expanding its health insurance coverage to thousands of uninsured and under-insured U.S. citizens.
With the strong performance in operating profits and operating revenue for the second quarter, the company announced that they will be raising their full-year earnings forecast for 2015.
"Based on these results, we are again raising our guidance on full-year 2015 operating earnings per share to at least $7.40 per share from our previous projection of $7.20 to $7.40 per share," Mark T. Bertolini, chairman and CEO of Aetna, said.
