Aetna, Hartford, Conn., attributed a 43% gain in net income in the second quarter to higher membership, strong underwriting results and continued expense efficiencies.
The insurer earned $409.7 million, or $1.35 per share, in the quarter ended June 30 on revenue of $5.5 billion. That compared with net income of $286.3 million, or 90 cents per share, on revenue of $4.9 billion in the year-ago quarter. Medical membership grew 60,000; Aetna said it has added a total of 780,000 members so far this year for a total medical membership of 14.4 million. The company's specialty insurance offerings, such as pharmacy and dental, also grew. Aetna said it expected profitable growth to come from broader participation in Medicare, including the new prescription-drug plan and Medicare Advantage in certain regions.
For the six months, Aetna said net income rose 28% to $834 million, or $2.74 per share, from $652.1 million, or $2.04 per share, in the year-ago period. Revenue was up 13.9% to $8.2 billion.