Insurer UnitedHealth Group Inc., whose chief executive is leaving amid a stock option scandal, Thursday posted a 38% rise in third-quarter profit, helped by gains from its Medicare drug plans and its acquisition of Cypress-based PacifiCare Health Systems.
Shares rose 5.5%, as UnitedHealth's better-than-expected results heartened investors after a scathing report released Sunday by its independent counsel that said the company had backdated options.
"It looks like the loss of the CEO and options scandals have not derailed the fundamentals," said John Farrall, a healthcare analyst with National City Private Client Group.
Incoming CEO Stephen Hemsley told analysts during a conference call that the company was "thoroughly and swiftly" putting in place the corporate governance overhaul announced by the UnitedHealth board in the wake of the report.