Awwal 01, 1432, Feb 04, 2011, SPA -- Health insurer Aetna Inc. said Friday its fourth-quarter net income rose 30 percent as it benefited from higher pricing and a slowdown in health care use that also has helped its competitors, according to AP. The Hartford, Connecticut, insurer said it earned $215.6 million, or 53 cents per share, in the three months that ended Dec. 31. That's up from $165.9 million, or 38 cents per share, in the same period last year. Revenue was down 2 percent to $8.54 billion. The company reported operating profit, which includes one-time items, of 63 cents per share. Analysts forecast earnings of 62 cents per share on $8.32 billion in revenue, according to FactSet. Aetna said the profit boost was «largely the result of higher commercial underwriting margins driven by management actions to appropriately price the business,» along with lower health care use. Aetna also is increasing its dividend to shareholders. It will now pay a 15-cent quarterly dividend on April 29 to shareholders as of April 14. The company most recently paid a 4-cent annual dividend on Nov. 30. Aetna is the third largest commercial health insurer based on enrollment, trailing WellPoint and UnitedHealth. Those insurers have both said slowing utilization helped their performance. During the quarter, Aetna said its overall medical benefit ratio fell to 83 percent from 85.4 percent, with its commercial medical benefit ratio falling to 80.7 percent from 85 percent. The medical benefit ratio is the percentage of premium the insurer spends on medical care. For the full year, the company earned $1.77 billion, or $4.18 per share, up from $1.28 billion, or $2.84 per share. Revenue fell to $34.25 billion from $34.76 billion. Looking ahead, the company expects 2011 operating profit between $3.70 and $3.80 per share, while analysts expect $3.69 per share in profit.
