UnitedHealth Group reported strong revenue growth in the third quarter of 2016, and the Minnetonka, Minn.-based insurer expects that growth in 2017.
UnitedHealth recorded revenues of $46.3 billion in the third quarter of 2016, up 12 percent from the same period of the year prior.
The company's Optum unit — which includes OptumHealth, OptumInsight and OptumRx — fared well in the third quarter of 2016, with revenue increasing 9 percent year over year to $21.1 billion.
UnitedHealthcare's revenue increased to $37.2 billion in the third quarter of 2016, up 13 percent year over year. Revenue attributable to the insurer's employer and individual segment grew 12 percent year over year to $13.3 billion. This boost was driven by membership growth and price increases on risk-based products, according to UnitedHealth. UnitedHealthcare's operating margin remained stable in the third quarter at 5.7 percent.
"Our growth indicators are positive as we conclude 2016, and we expect to be well positioned in 2017 to better serve consumers and deliver more value to the health system overall," said Stephen J. Hemsley, CEO of UnitedHealth Group.
UnitedHealth said net earnings increased 23.2 percent year over year to $1.97 billion in the third quarter.
The company now expects to record adjusted net earnings of approximately $8.0 per share for 2016, up from its previous estimate of $7.80 to $7.95 per share.
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