UnitedHealth Group 2Q Profit Rises

By Dave Sebastian

UnitedHealth Group Inc. said profit for its second quarter rose as it accounted for the deferral of care in its risk-based businesses, though it expects results to be tempered in quarters ahead by Covid-19 cost and economic effects.

The parent of the nation's largest health insurer posted net income of $6.64 billion, or $6.91 a share, compared with $3.29 billion, or $3.42 a share, in the same period last year. Adjusted earnings were $7.12 a share.

Analysts polled by FactSet were looking for earnings of $5.02 a share, or $5.28 a share on an adjusted basis.

The company posted revenue of $62.14 billion, up 2.5% from the comparable quarter last year. Analysts were expecting $63.48 billion.

The medical loss ratio--the percentage of premium revenue spent on health care--at its insurance unit fell to 70.2% from 83.1% in the prior year due to the temporary deferral of care due to the pandemic. Analysts were looking for 78.2%.

The company's UnitedHealthcare unit recorded revenue of $49.1 billion, up from $48.6 billion the year-ago period due to growth in public-sector and senior programs, offset by commercial enrollment declines. Sales for its Optum health-services business grew to $32.7 billion from $28 billion.

Operating costs fell to $52.9 billion from $55.85 billion.

The company continues to expect 2020 earnings of $15.45 a share to $15.75 a share, or $16.25 a share to $16.55 a share on an adjusted basis.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

July 15, 2020 06:35 ET (10:35 GMT)

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