CVS Health reported $4.6 billion in 2024 profit including $1.6 billion in the fourth quarter as its health insurance business works to overcome rising medical expenses.

CVS Health steered through rising costs in its insurance division to handily beat profit expectations on Wall Street. The drugstore chain and pharmacy benefits manager earned $1.64 billion, or $1.30 per share for the period ended Dec.

CVS Health reported a smaller-than-expected drop in fourth-quarter profit on Wednesday as its pace of medical cost increases slowed and revenue at its pharmacy business jumped, sending its shares up more than 12% in premarket trading.