Oct 19 (Reuters) - Health insurer Elevance Health Inc (ELV.N) on Wednesday raised its annual profit forecast after beating estimates for quarterly earnings on lower-than-expected medical costs and strong performance of its Medicaid business.
Last week, larger rival UnitedHealth Group Inc (UNH.N) raised its annual profit forecast for the third straight quarter and said the direct impact of COVID-19 was expected to ease next year.
The lower the ratio, the better it is for a health insurer as it indicates a tight rein on costs.
Elevance, which was previously known as Anthem, now expects annual adjusted earnings to be higher than $28.95 per share, compared with its prior forecast of more than $28.70 per share.
Excluding items, the company reported earnings of $7.53 per share, above analysts' estimates of $7.15, according to IBES estimates from Refinitiv.