Aetna Reports Increase of 73% for 4Q Net Income

Health insurance company Aetna recently reported fourth quarter net income that jumped 73 percent over the same quarter in 2010, an increase driven by low use of healthcare and reduction in key expenses, according to a Washington Post report.

Aetna's earnings and revenue beat Wall Street expectations, in part due to slower-than-expected growth in healthcare utilization, which has helped insurers outperform expectations over the last year.

Aetna reported Wednesday that it earned $372.6 million ($1.02 per share) in the three months ending Dec. 31. That's an increase from $215.6 million ($0.53 per share) in the same quarter in 2010. Revenue climbed slightly to $8.57 billion.

Aetna is currently the third largest commercial health insurer based on both enrollment and revenue, behind WellPoint and UnitedHealth Group. Healthcare costs — the amount the company paid in medical claims — fell 2 percent last quarter, and operating expenses also fell 3 percent.

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