Coventry Health Care Inc. on Tuesday revealed that soaring membership, rates hikes and lower costs have nudged the company's profit by 24% during the fourth quarter, exceeding profit expectations, as overall membership rose while medical costs fell.

The whole industry has been facing enrollment and soaring cost pressures, which now include added expenses associated with coverage provided to members who have lost their jobs and lower government reimbursements at their Medicare and Medicaid businesses.

In addition the company reported a profit of $109.1 million, or 74 cents a share, up from $88.2 million, or 60 cents, a year earlier. While, Revenue registered a 15% increase to $3.43 billion as premium revenue rose 17%.

However, analysts polled by Thomson Reuters most recently augured earnings of 56 cents on revenue of $3.49 billion.

Total membership witnesses a net 5.27 million members at the end of the fourth quarter, from 4.62 million at the end of the same period last year.

For 2010, the company estimates its earnings to boost this year in line with speculations, projecting $2.10 to $2.25 a share on revenue of $10.86 billion to $11.37 billion. However, analysts predict the earnings and revenue to be $2.23 and $11.21 billion respectively.