Aetna reports strong profit as Humana deal continues
The earnings report, which outpaced Wall Street expectations, comes as Aetna is in the midst of trying to close its deal to acquire Humana.
Aetna's net income jumped 33% to $731.8 million in the second quarter, compared to the same period a year earlier, as the health insurance giant seeks to complete the $37 billion acquisition of rival Humana.
The nation's third-largest health insurer raised its forecast for full-year 2015 operating earnings per share from a previous range of $7.20 to $7.40 to "at least" $7.40.
Aetna's operating profit was similar to its net income. Operating profit rose 18% to $722.1 million. Total revenue increased 5% to $15.2 billion.
“Our performance continues to demonstrate the execution of Aetna’s growth strategy and the power of our diversified business portfolio," Aetna CEO Mark Bertolini said in a statement. "We believe our proposed acquisition of Humana will further that strategy, delivering both significant value to customers and attractive returns for shareholders."
The company's medical benefits ratio -- which measures the slice of premiums that is spent on medical claims -- fell from 83.1% a year ago to 81.1%. That's an encouraging trend for investors, who want the company to limit its medical costs.
Membership in the company's Medicaid and Medicare plans rose by 8% for the quarter, compared to the same period a year earlier. Combined with commercial health plans, overall medical membership rose 2% for Aetna in the quarter.
The earnings report, which outpaced Wall Street expectations, comes as Aetna is in the midst of trying to close its deal to acquire Humana.
The industry is rapidly consolidating as insurers face pressure to adapt to the effects of federal health care reform and other influences.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.