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Aug. 3, 2015, 6:43 p.m. EDT

TriNet falls, hurt by large medical claims

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By Neil Haggerty

Shares of TriNet Group Inc. tumbled Monday after the human-resources provider reported disappointing results, citing a higher-than-expected number of large medical claims.

TriNet shares, already down 26% over the past three months, were down nearly 30% at $18.88 in after-hours trading.

"We were disappointed that these claims were well in excess of our expected claims volatility," said Burton M. Goldfield, TriNet's president and chief executive. "We continue to analyze this part of our business and consider options for addressing variability in medical and the predictability of its contribution to" the company's results.

For the quarter ended June 30, the company reported a loss of $1.31 million, or two cents per share, compared with earnings of $6.22 million, or 9 cents per share, a year earlier. On an adjusted basis, the company reported per-share earnings of 14 cents a share, down from 24 cents.

Total revenue rose 22% to $640 million, while net service revenue decreased 2% to $122 million. Net service revenue includes professional service and net insurance service revenue, which fell 43% in the quarter, reflecting the higher claims.

Analysts polled by Thomson Reuters were looking for earnings of 27 cents a share on $137.6 million in revenue.

Write to Neil Haggerty at neil.haggerty@wsj.com

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