Health insurer Humana's quarterly profit beats estimates
May 2 (Reuters) - U.S. health insurer Humana Inc reported a better-than-expected quarterly profit on Wednesday as it signed up more people for its Medicare Advantage business, which sells healthcare plans to the elderly and the disabled.
Enrolments at the business rose 6 percent to 3 million in the quarter ended March 31, while membership in its group Medicare Advantage unit rose 14 percent to 492,700.
The fast-growing and profitable Medicare Advantage plans account for about a third of Medicare members, making it an important growth area for private insurers.
Humana said its net income fell to $491 million, or $3.53 per share, in the quarter ended March 31, from $1.12 billion, or $7.49 per share, a year earlier.
Last year's results included a gain related to its terminated merger agreement with Aetna Inc.
Excluding items, the company earned $3.36 per share, beating analysts' average estimate of $3.19, according to Thomson Reuters I/B/E/S.
Revenue rose nearly 4 percent to $14.28 billion.
(Reporting by Ankur Banerjee in Bengaluru Editing by Saumyadeb Chakrabarty)