Elevance beats profit estimates as health insurer keeps costs in check

Core Insights - Elevance Health exceeded Wall Street profit estimates for the third quarter, leading to a 3% increase in shares during premarket trading [1] - The company managed to control medical costs despite warnings from several insurers about elevated costs in government-backed plans due to increased healthcare demand [1][2] Financial Performance - Elevance reported a quarterly medical loss ratio of 91.3%, an increase from 89.5% in the same period last year, but better than analysts' expectations of 91.73% [4] - The company's quarterly adjusted profit per share was $6.03, surpassing estimates of $4.93 [5] - Carelon's operating revenue rose approximately 33% to $18.3 billion, driven by recent acquisitions in home health and pharmacy services [5] Strategic Outlook - CEO Gail Boudreaux emphasized the company's disciplined execution and management as they plan for 2026 [2] - Elevance reaffirmed its adjusted profit forecast for 2025 at about $30 per share and projected a medical loss ratio of 90% [5] - The company had previously indicated elevated medical costs in its individual plans and Medicaid plans, primarily due to its Medicare business [3]