Centene lifted its guidance for the year after revenue and profit growth in the second quarter were driven by strength in its core government-sponsored and individual healthcare lines.

The care and health insurance company on Tuesday said it now expects higher revenue in the year, driven largely by premium tax revenue, as well as its Marketplace and Medicaid businesses.

As a result, it now expects total revenues to be $6 billion higher, with a new range of $193.5 billion to $197.5 billion. Analysts expect $191.16 billion, according to FactSet.

Premium and service revenues guidance range was also increased by $2 billion to a new range of $173 billion to $177 billion.

At the same time, the company said its guidance floor was lifted to greater than $3.11 and its adjusted diluted EPS guidance floor to more than $4.80.

For the second quarter, Centene posted a net income of $1.09 billion, or $2.19 a share, compared with a loss of $253 million, or 51 cents a share, in the same quarter a year ago.

On an adjusted basis, which excludes one-off costs and exceptional items, earnings came to $2.51 a share. According to FactSet, analysts were expecting $1.08 a share.

Total revenues rose to $53.58 billion from $48.74 billion. Analysts expected a slight decline to $47.64 billion.

Premium and service revenues were $44.38 billion, compared with $42.47 billion, largely due to a 5% increase in Medicaid revenue, its largest contributor, and a 17% increase in Medicare.

Health benefits ratio, a key insurance metric showing the percentage of premium revenue spent on paying medical claims, came to 89.6%, down from 93% a year earlier. A lower ratio is better for profits. FactSet was expecting 91%.