Health insurers report strong Q1 results but face key test in Q2 due to delayed medical claims data.

Major health insurers like UnitedHealth, Elevance, Cigna, and Humana posted solid first-quarter results, lifting investor confidence despite ongoing challenges from higher medical costs. These results were partly due to seasonal factors and conservative pricing strategies, especially in Medicare Advantage plans, along with strengthened medical reserves. However, analysts warn that incomplete claims data from Q1 means the second quarter will provide a clearer picture of actual medical costs and earnings outlooks. Investors will closely watch Q2 results and medical loss ratios to see if insurers have accurately priced their plans and if the positive momentum can continue through 2026.