UPDATE 2-Amerigroup Q1 profit rises; cuts 2008 outlook

(Adds analyst's comments)

By Varsha Tickoo

BANGALORE, April 23 (Reuters) - Health insurer Amerigroup Corp (AGP.N: Quote, Profile, Research) posted a 65 percent increase in first-quarter profit, beating market estimates, but cut its full-year earnings forecast for the second time in two months, reflecting the company's exit from two regions.

Several U.S. health insurers have lowered their forecasts this year, but Amerigroup may not be affected by the issues plaguing commercial managed-care providers that mainly serve employers, Stifel Nicolaus analyst Thomas Carroll said from Baltimore.

Amerigroup specializes in Medicaid plans that provide healthcare for those who cannot afford it, while companies like WellPoint Inc (WLP.N: Quote, Profile, Research) and UnitedHealth Group Inc (UNH.N: Quote, Profile, Research) largely provide health benefits to employers.

Both these companies cut outlook recently, blaming in part their employer businesses.

Amerigroup operates in 10 U.S. states, excluding the exited regions.

For the first quarter, Amerigroup reported a profit of $35.1 million, or 65 cents a share, compared with $21.3 million, or 40 cents a share, a year ago.

Revenue rose more than 30 percent to $1.07 billion.