Managed care company UnitedHealth Group says it will start offering a quarterly dividend of 12.5 cents per share, a big increase from its typical dividend of 3 cents per share annually.

The Minnetonka, Minn., health insurer says the dividend will be paid June 21 to shareholders of record as of June 7.

UnitedHealth is the largest publicly traded health insurer based on revenue. Stifel Nicolaus analyst Tom Carroll says it is extremely unusual for a health insurer to offer more than a token dividend.

The company said earlier this year it would consider a larger dividend after it determined the impact health care reform would have on its business.