Major U.S. health insurers reported stronger-than-expected earnings, signaling potential relief from rising medical expenses.
UnitedHealth Group, Cigna, Humana, Elevance Health, and Centene posted first-quarter results above analyst expectations, citing improved cost management. The S&P managed care index fell over 12% since July 2023 due to rising medical costs in government-sponsored plans.
Insurers typically see stronger Q1 earnings as deductibles delay claims payouts. Analysts noted a mild respiratory season may have contributed to lower costs but remain cautious about declaring a sustained trend. The sector’s performance was its best since the COVID-19 pandemic.
Shares reacted positively, though analysts await the next quarter’s results to confirm stability in medical cost trends.