May 2 (Reuters) – U.S. health insurer Humana Inc reported a better-than-expected quarterly profit on Wednesday as it signed up more people for its Medicare Advantage business, which sells healthcare plans to the elderly and the disabled.
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Enrolments at the business rose 6 percent to 3 million in the quarter ended March 31, while membership in its group Medicare Advantage unit rose 14 percent to 492,700.
The fast-growing and profitable Medicare Advantage plans account for about a third of Medicare members, making it an important growth area for private insurers.
Humana said its net income fell to $491 million, or $3.53 per share, in the quarter ended March 31, from $1.12 billion, or $7.49 per share, a year earlier.
Last year’s results included a gain related to its terminated merger agreement with Aetna Inc.
Excluding items, the company earned $3.36 per share, beating analysts’ average estimate of $3.19, according to Thomson Reuters I/B/E/S.
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Revenue rose nearly 4 percent to $14.28 billion.
(Reporting by Ankur Banerjee in Bengaluru Editing by Saumyadeb Chakrabarty)
