(Reuters) -UnitedHealth Group Inc reported a 28.8% increase in quarterly profit on Friday and raised its full-year profit forecast, helped by growth in its Optum health services unit and lower medical costs in its health insurance business.
The largest U.S. health insurer expects adjusted full-year profit between $21.85 and $22.05 per share compared with $21.40 to $21.90 forecast earlier.
The COVID-19 pandemic has reduced the number of people undergoing elective medical procedures, helping soften the blow from costs incurred by insurers on COVID-19 testing and treatment.
The company’s medical cost ratio – the percentage of premium it spends on claims – fell to 81% in the third quarter ended Sept. 30 from 83% last year. Analysts had expected a ratio of 82.4%.
Quarterly profit rose to $5.26 billion, or $5.55 per share, from $4.09 billion, or $4.28 per share, a year ago.
(Reporting by Khushi Mandowara and Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)
