Aetna Q4 Profit Rises; Results Top Estimates

(RTTNews) - Health insure Aetna Inc. (AET) reported a profit for the fourth-quarter 2015 that grew 38% from last year. Quarterly operating earnings increased 11% from the prior year, due to higher underwriting margins and higher fees and other revenue in Aetna's Health Care segment, partially offset by an increase in general and administrative expenses.

Both operating earnings per share and quarterly revenues topped analysts' expectations.

The company projects 2016 operating earnings per share of at least $7.75 Analysts expect annual earnings of $8.05 per share.

Net income attributable to the company for the fourth quarter of 2015 rose to $320.8 million or $0.91 per share from $232.0 million or $0.65 per share in the prior year. Net income for the fourth quarter of 2015 included $0.46 per share of net charges.

Operating earnings for the quarter were $482.1 million or $1.37 per share up from $434.0 million or $1.22 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.21 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues grew 2% to $15.1 billion from the prior year's $14.8 billion, as a result of membership growth in Aetna's Government business as well as higher Health Care premium yields, partially offset by membership losses in Aetna's group commercial Insured products. Wall Street expected revenues of $14.93 billion.