NEW YORK (Reuters) — US health insurer Aetna Inc. yesterday said quarterly profit rose 28 percent on moderating medical costs and higher enrolment, beating Wall Street’s projections and pushing shares sharply higher.The third-quarter results from the nation’s third largest insurer, which also forecast 2006 and 2007 profit above analysts’ expectations, stood in stark contrast to its previous two quarters that soundly disappointed investors.

“Aetna’s quarter will send the entire managed care group higher today, because there was lingering concern in the market that the company would report another disastrous quarter,” CIBC analyst Carl McDonald said.

Aetna shares rose as much as $3.85, or ten percent, to $42.38 in opening trade on the New York Stock Exchange.

Shares rose as much as 11 percent early yesterday to their highest level since April, although the shares remain down about ten percent this year.

Shares of rivals UnitedHealth Group Inc. and WellPoint Inc. , which earlier this month reported strong quarterly profit growth, rose modestly.

Net income at the Hartford, Connecticut-based company rose to $476 million, or 85 cents per share, from $373 million, or 62 cents per share, a year earlier.