UnitedHealth profit drops 28%

UnitedHealth Group Inc. reported a 28% drop in third-quarter profit, but the insurer also reassured Wall Street with a performance that met or surpassed expectations in several areas.

Minnetonka, Minn.-based UnitedHealth said net income fell to $920 million, or 75 cents a share, down from $1.28 billion, or 95 cents, a year earlier. This was driven in part by higher operating costs.

But the second-largest U.S. health insurer also said revenue rose 8% to $20.2 billion.

Its adjusted profit was 73 cents a share, excluding a 2-cent benefit from a change in the estimate of net costs to settle a couple of stock option-related lawsuits.

That matched Wall Street expectations. Analysts polled by Thomson Reuters also expected $20.04 billion in revenue.

UnitedHealth shares rose 96 cents, or 4.4%, to $22.63.