Oct 28 (Reuters) - UnitedHealth ( UNH ) on Tuesday

raised its annual profit forecast after reporting

better-than-expected quarterly earnings as the U.S. health

insurer kept medical costs in check.

The company earlier this year drastically cut its outlook,

which had sent its shares plummeting.

Newly returned CEO Stephen Hemsley has been under pressure

to regain investor and consumer trust in the wake of an

unexpected surge in medical costs and Americans' anger at the

high price of health care.

Hemsley, who has replaced several long-time executives, was

brought in earlier this year as part of a management shakeup.

"We remain focused on strengthening performance and

positioning for durable and accelerating growth in 2026 and

beyond, and our results this quarter reflect solid execution

toward that goal," said Hemsley.

For the third quarter ended September 30, the company's

medical loss ratio - the percentage of premiums spent on medical

care - stood at 89.9%, which was in line with the company's

expectations. Insurers aim for a ratio close to around 80%.

Analysts on average had expected the company to report a

ratio of 89.87%, according to LSEG data.

Quarterly revenue at its Optum health services unit was flat

year-over-year at $25.9 billion.

Revenue at Optum Rx, UnitedHealth's ( UNH ) pharmacy benefit

manager, rose 16% to $39.7 billion, helped by higher

prescription volumes from new clients and growth in existing

clients.

The healthcare giant now sees 2025 adjusted profit per share

to be at least $16.25, compared with its previous estimate of at

least $16.00. This is higher than the average analyst estimate

of $16.20 per share.

On an adjusted basis, the company earned a profit of $2.92

per share for the quarter, beating analysts' average estimate of

$2.79.

(Reporting by Sriparna Roy and Sneha S K in Bengaluru; Editing

by Shinjini Ganguli)