UnitedHealth Group's Strong Q2 Profit Amid Tech Unit Hack

UnitedHealth Group reported a stronger-than-anticipated profit for Q2, driven by its healthcare services unit. The company also updated cost estimates tied to a hack earlier this year at its tech unit, Change Healthcare, which disrupted medical payments. UnitedHealth's medical loss ratio rose to 85.1% from 83.2% last year.

UnitedHealth Group reported a stronger-than-expected profit for the second quarter on Tuesday, attributed to the robust performance of its healthcare services unit. The company also revised upward its cost estimates related to a cyberattack on its tech unit earlier this year.

UnitedHealth announced it had restored the majority of affected Change Healthcare services. The February hack at this unit, which handles around 50% of U.S. medical claims, had caused significant payment disruptions to healthcare providers. The company now projects the total 2024 financial impact from the hack to range between $1.90 and $2.05 per share, compared to an earlier forecast of $1.15 to $1.35 per share.

In the second quarter, UnitedHealth's medical loss ratio rose to 85.1%, up from 83.2% a year ago, surpassing the 84.40% expected by analysts. The company posted an adjusted quarterly profit per share of $6.80, exceeding the average analyst estimate of $6.66, according to LSEG data. Despite these positive results, shares fell 2% to $505.01 in choppy premarket trading after an initial rise.