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(Reuters) -Health insurer Centene (NYSE:) Corp raised its 2024 adjusted profit forecast on Tuesday, bringing it broadly in line with Wall Street expectations.
In November, rival UnitedHealth Group (NYSE:) also forecast its 2024 profit in line with market estimates, indicating that medical costs are likely to remain elevated for the health insurance giant.
The healthcare sector has seen a recovery in demand this year, especially among older patients who started returning to clinics and hospitals for procedures they had delayed during the COVID-19 pandemic.
Centene expects 2024 medical loss ratio, or the percentage of premiums paid out for medical services, between 87.3% and 87.9%, compared with LSEG estimates of 87.81%.
The company now expects full-year adjusted profit of greater than $6.70 per share compared with its previous projection of greater than $6.60 per share.
Analysts on average expected 2024 profit at $6.77 per share, according to LSEG data.
The health insurer forecast 2024 revenue in the range of $142.5 billion to $145.5 billion, higher than analysts’ estimate of $142.1 billion.
The company’s board also authorized a $4 billion increase to stock repurchase program, which is an addition to about $1.2 billion remaining under the previously announced program.