UnitedHealth's 3Q profit rises 23 percent

UnitedHealth Group
In this July 16, 2007 file photo, the headquarters of UnitedHealth Group is shown in Minnetonka, Minn. Insurer UnitedHealth Group said Tuesday, Oct. 19, 2010, its third-quarter profit rose 23 percent, trumping Wall Street expectations as claims leftover from previous quarters once again came in lower than expected.
AP Photo/Jim Mone, file

Insurer UnitedHealth Group said Tuesday its third-quarter profit rose 23 percent, trumping Wall Street expectations as claims leftover from previous quarters once again came in lower than expected.

The Minnetonka, Minn., insurer says it earned $1.28 billion, or $1.14 per share, in the three months that ended Sept 30. That's up from the $1.04 billion, or 89 cents per share, it earned in the same quarter last year.

Revenue was up 9.1 percent to $23.67 billion. Four company units - UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, Ingenix and Prescription Solutions - posted double-digit revenue gains in the quarter.

Analyst polled by Thomson Reuters forecast earnings of 84 cents per share on about $23 billion in revenue.

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During the quarter, the company realized $230 million in favorable prior-period reserve development, including $80 million from prior years, compared with $190 million in the third quarter of 2009, $100 million of which related to prior years.

UnitedHealth is the largest publicly traded health insurer based on total revenue and the second-largest based on enrollment, trailing only WellPoint. It is the first big health insurer to release its earnings every quarter, and many analysts and investors see it as a bellwether for the sector.

Looking ahead, UnitedHealth expects to earn $3.85 to $3.95 per share for its full year 2010 on revenue of about $94 billion. On average, analysts expect earnings per share of $3.60 on revenue of about $92.93 billion.

(Copyright 2010 by The Associated Press. All Rights Reserved.)