(Reuters) – U.S. health insurer Centene forecast a better-than-expected profit for 2025 on Thursday, betting on the strength of its commercial plans to neutralize higher costs in its government-backed health plans.
The company expects 2025 adjusted profit greater than $7.25 per share, compared with analysts’ average estimate of $6.97, according to data compiled by LSEG.
Shares of Missouri-based Centene were up 2.4% premarket.
The insurer provided the forecast ahead of its investor day, which was changed to a virtual event after the fatal shooting of Brian Thompson, the CEO of UnitedHealth Group’s health insurance unit, in New York last week.
Centene, however, projected higher-than-expected medical care costs for 2025 as it expects to pay more to cover persistent demand among members enrolled in its government-backed health plans.
It expects a health benefits ratio — the percentage of premiums spent on medical care — in the range of 88.4% to 89.0%, compared with analysts’ average estimate of 88.23%.
(Reporting by Mariam Sunny and Christy Santhosh in Bengaluru; Editing by Sriraj Kalluvila)
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