NEW YORK, June 2 (Reuters) - UnitedHealth Group's ( UNH )

new CEO Steve Hemsley on Monday apologized for the

company's recent earnings underperformance, and vowed it will

curb rising costs in its insurance business and optimize quality

in its health services moving forward.

"We are well aware we have not fulfilled your

expectations or our own. We apologize for that performance, and

we're humbly determined to earn back your trust and your

confidence," Hemsley said at the company's annual shareholder

meeting.

Hemsley replaced former CEO Andrew Witty in May, following

the healthcare giant's first earnings miss since 2008. Along

with the appointment, UnitedHealth ( UNH ) suspended its earnings

outlook, as it weighed higher-than-expected costs in its

Medicare Advantage unit for adults 65 and older and people with

disabilities.