(Reuters) – Health insurer Centene Corp raised its forecast for full-year adjusted profit on Friday, betting on higher premiums from its government-backed Medicaid health insurance plans.
The company has performed well on the federal Obamacare marketplace – where it offers insurance plans – so far in the second quarter, it said in prepared remarks for its investor day.
It now expects a profit of $5.55 to $5.70 per share for the full year, compared with its earlier forecast of between $5.40 and $5.55 per share.
The company said its board has decided to increase its existing share buyback program by $3 billion and launch a $1 billion debt repurchase program, as the insurer prepares for the upcoming divestitures of two of its pharmacy businesses.
Centene said last month it would sell the units for about $2.8 billion as part of its strategy to exit the pharmacy benefit management space.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Aditya Soni)
