UnitedHealth Group beat quarterly profit expectations in the fourth quarter even as costs related to the COVID-19 pandemic depressed earnings from its health insurance business.
The Minnetonka-based company’s UnitedHealthcare division, which is the nation’s largest health insurer, reported huge profits in the second quarter as the pandemic slashed expenses by forcing delays in many non-emergency health care services.
Normal care patterns had resumed by the fourth quarter, the company said Wednesday, even as the health insurance business “continued efforts to provide support and relief efforts to correct economic imbalances caused by the pandemic.”
The company also added to reserves for rebates, according to an earnings release.
Overall in the fourth quarter, UnitedHealth Group posted $2.2 billion in earnings on $65.47 billion of revenue, down from a quarterly profit in the year-ago quarter of $3.5 billion.
Adjusted earnings per share of $2.52 beat by 11 cents the expectations of analysts surveyed by Refinitiv.
UnitedHealth Group is Minnesota’s largest company by revenue, with full-year sales in 2020 growing to $257.1 billion. The company on Wednesday affirmed its 2021 earnings guidance, which was issued at an investor conference last year.
Christopher Snowbeck • 612-673-4744
Twitter: @chrissnowbeck