UnitedHealth reported a third-quarter profit on Friday that beat analysts' estimates, helped by lower-than-expected medical costs for the healthcare conglomerate.
The company's shares rose 1% in premarket trading.
Earlier this year, both UnitedHealth and Humana, the two biggest providers of Medicare Advantage plans for people aged 65 and above, had warned that an increase in non-urgent surgeries was driving up claims.
Older adults have started opting for elective procedures such as hip and knee replacements, as COVID risks continue to recede, leading to a spike in costs.
UnitedHealth said in July it expects medical costs for the third quarter to be "a little bit lower" compared with the second quarter.
The company's medical loss ratio for the quarter, the percentage of spend on claims compared to premiums collected, was 82.3%, compared with analysts' estimates of 82.82%, according to LSEG data.
UnitedHealth reported an adjusted profit of $6.56 per share for the third quarter, compared with estimates of $6.32.
The company now expects an adjusted profit between $24.85 and $25.00 per share, compared with its previous outlook of $24.70 to $25.00. Analysts were expecting a profit of $24.84 per share.
(Reporting by Mariam Sunny and Bhanvi Satija in Bengaluru; Editing by Shounak Dasgupta)
