(Reuters) -Humana beat Wall Street estimates for first-quarter profit on Wednesday, as the health insurer spent less on medical services than expected.
On an adjusted basis, the company earned a profit of $11.58 per share, above analysts’ average estimate of $10.1, according to data compiled by LSEG.
The company also reaffirmed its 2025 adjusted profit forecast of about $16.25 per share.
Industry bellwether UnitedHealth last week missed quarterly estimates for the first time since 2008, in part due to high spending related to its Medicare Advantage plans for older adults and those with disabilities, sparking a brief selloff in the sector.
Humana is a top provider of Medicare Advantage plans, under which the U.S. government pays private insurers a set rate to manage healthcare for people aged 65 and older, and those with disabilities.
Investors will be keenly watching for details on the company’s medical spending.
The insurer’s medical cost ratio – the percentage of premiums spent on medical care – came in at 87.4% for the quarter, in line with its prior estimate. Analysts on average had expected a medical cost ratio of 88.45%.
(Reporting by Sneha S K in Bengaluru; Editing by Shinjini Ganguli)
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