×

UPDATE 1-Health insurer Molina's revenue rises more than expected

(Adds details on results, analysts estimates)

Nov 2 (Reuters) - U.S. health insurer Molina Healthcare Inc's quarterly revenue increased a better-than-expected 11 percent, bolstered by benefits from its Obamacare business, and sending its shares up nearly 9 percent after the bell on Thursday.

Molina's results come at a time when the insurance market is in a mayhem over President Donald Trump's decision to scrap off billions of dollars in subsidies, that help health insurers give discounts to low-income families.

President Trump's order would hurt Molina's pre-tax income by about $85 million in the current quarter, the company said.

The company said total revenue rose to $5.03 billion in the third quarter from $4.55 billion a year earlier, beating analysts average estimates of $4.96 million, according to Thomson Reuters I/B/E/S.

Medical care ratio, the amount an insurer spends on medical claims compared with the insurance premiums that it brings in, improved to 88.3 percent from 89.4 percent.

It posted a net loss of $97 million, or $1.70 per share, in the latest quarter ended Sept. 30, compared with a profit of $42 million, or 76 cents per share, a year earlier.

The latest quarter included an impairment and restructuring costs of about $247 million.

Molina in August pulled its full-year earnings forecast, said it would exit from two Obamacare markets and lay off about 7 percent of its workforce by the end of the year, as part of a restructuring drive.

Excluding items, the company incurred a loss of $1.62 per share. (Reporting by Divya Grover in Bengaluru; Editing by Shounak Dasgupta and Savio D'Souza)