Health insurers rally on easing medical costs and AI efficiency hopes, led by Humana and UnitedHealth.

Health insurer stocks surged Thursday after analysts highlighted improving medical cost trends and potential AI-driven efficiency gains in managed care. Humana led with a 6% rise, followed by UnitedHealth up 5% and Cigna up 4%. Analysts raised price targets for UnitedHealth, citing margin recovery and softer utilization, while AI could boost earnings by 45%. The sector-wide optimism also benefited CVS Health. UnitedHealth's strong Q1 results and upcoming dividend add to positive sentiment. Investors will watch Q2 earnings for confirmation of these trends and sustainability of the rally.