By Tamara Mathias
(Reuters) - UnitedHealth Group Inc (NYSE:UNH) beat analysts' expectations for second-quarter profit on Tuesday and raised its full-year earnings forecast as tens of thousands of retirees joined its health insurance plans.
The largest U.S. health insurer added 2.2 million people and its Medicare Advantage plans, an important business for insurers that service retirees, brought in $2.1 billion more in sales and added 450,000 members from a year earlier.
The industry bellwether now expects adjusted earnings per share of $12.50 to $12.75 in the year, compared with its previous forecast of $12.40 to $12.65, a range that some analysts called "conservative" in the face of strong performance in the sector.
The company's medical care ratio, or the percentage of premiums paid out for medical services, improved to 81.9 percent in the quarter, compared with 82.2 percent last year.
Revenue from the company's Optum unit, through which it acts as an industry middleman in pharmacy benefits management, grew 9 percent to $24.73 billion.
UnitedHealth's net earnings attributable to shareholders rose nearly 28 percent to $2.92 billion in the quarter ended June 30.
Excluding items, the company earned $3.14 per share, above the average analyst estimate of $3.04, according to Thomson Reuters I/B/E/S.
Total revenue rose 12 percent to $56.09 billion, in line with analysts' estimates.