Humana Inc. shares jumped in trading before US markets opened after the insurer said an uptick in medical costs it warned about in June was stabilizing.

Adjusted profit for the second quarter was $8.94 a share, the Medicare-focused insurer reported Wednesday, exceeding analysts’ expectations. Humana affirmed its adjusted earnings outlook for the year and boosted its forecast for membership growth in Medicare Advantage plans. The shares rose 5.4% in pre-market trading after losing 11% this year through Tuesday’s close.

The report helps defuse concerns Humana and rival UnitedHealth Group Inc. raised in June when they disclosed that care expenses, especially for outpatient surgeries, were rising faster than expected. The warning sparked a selloff as investors feared that insurers hadn’t adequately priced for a rebound in care needed by patients who deferred procedures during the pandemic.

UnitedHealth’s results in July dispelled some of that worry and lifted shares across the sector. Humana highlighted “stabilizing Medicare Advantage utilization environment based on most recent claims activity” in its earnings release, without elaborating.

Humana affirmed its full-year guidance for adjusted earnings of at least $28.25 per share. Medical expenses as a percent of premium revenue would fall within its previously given range of 86.3% to 87.3%, the company said.

Humana also reported a $90 million charge related to “certain anticipated litigation expenses” that was stripped out of its adjusted results.

(Corrects second paragraph to specify profit figure is per share)