(Reuters) – CVS Health Corp on Wednesday raised its full-year profit forecast, following strong performance at its health insurance and pharmacy benefit management businesses in the third quarter, sending its shares up 3% in premarket trade.
CVS’ health insurance business benefited from a slow recovery in elective procedures and a fall in COVID cases, which kept costs in check, as did peers Elevance Health and UnitedHealth.
The insurance business’ medical benefit ratio, or spending on claims against premiums earned, was 83.5%, compared with 85.8% a year earlier when COVID cases had surged due to the Delta wave.
The healthcare company now expects 2022 adjusted earnings per share between $8.55 and $8.65, compared with $8.40 to $8.60 forecast earlier.
(Reporting by Leroy Leo and Nandhini Srinivasan in Bengaluru; Editing by Vinay Dwivedi)
