Aetna Profit Up 41% as Revenue Gains 14%

Aetna Inc. said Thursday that fourth-quarter profit rose 41% as the third-largest U.S. health insurance provider added customers and held down costs.

Net income rose to $423 million, or $1.42 a share, from $300.7 million, or 98 cents, a year earlier, the Hartford, Conn.-based company said. Revenue climbed 14% to $5.9 billion.

The results reflect retiring Chief Executive John Rowe’s plan to raise profitability by pushing additional products, such as dental insurance, and decreasing the portion of revenue needed to operate the business. That figure fell to 19.4% from 20.1% a year earlier, and dental plan enrollment was up 9.5%, the company said.

“No one is growing their membership more effectively than Aetna right now,” said Patrick J. Hojlo, an analyst at Credit Suisse in New York.

Aetna said 2006 operating profit would be $5.57 to $5.63 a share before stock-option expensing, compared with an earlier estimate of $5.45 to $5.50, based on 297 million shares. Revenue will grow about 14% in 2006.

Shares of Aetna rose $3.15 to $99.27.