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 reported a smaller-than-expected drop in fourth-quarter profit on Wednesday as the pace of medical cost increases slowed at the healthcare conglomerate and revenues jumped in its pharmacy business.

CVS Health’s adjusted fourth-quarter profit handily beat Wall Street’s estimates, even as the drugstore chain and pharmacy benefits manager dealt with rising costs in its insurance division