UnitedHealth's Quiet Profit Boost Under The Scanner

According to Bloomberg, UnitedHealth UNH quietly sold stakes in its business units to generate an extra $3.3 billion in profit last year, preserving its 60-quarter streak of earnings beats, padding profits in the process.

The insurer struck deals with private equity firms like Warburg Pincus and KKR that included clauses to buy back those stakes at a premium. Most of the gains showed up in the fourth quarter and slipped into its annual report with little fanfare.

That maneuver helped offset rising medical costs and prevented UnitedHealth from missing its first quarterly beat in over 15 years. It also highlights the lengths companies will go to meet Wall Street's expectations.

Investors and regulators will be watching UnitedHealth's next results closely to see if this becomes a regular play or draws tougher scrutiny.