Cigna Reports Strong Earnings, Increased Customer Base

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Cigna Corp. on Thursday reported earnings for the three month period ending June 30 that were better than analysts expected as the company had low medical costs from claims and growth in its customer base.
 

Net income for the quarter was $505 million, or $1.76 per share, compared with $380 million, or $1.31 per share, during the same period last year. Analysts polled by Thomson Reuters were expecting $1.60 on average.Revenues were up to $7.98 billion from $7.42 billion for the quarter. Adjusted income from operations was $512 million during the quarter, up from $434 million.

Cigna’s customer base in health insurance grew from 13.4 million to 13.8 million people, year over year.

Cigna also had growth in its behavioral care membership, from 21.2 million to 22.39 million people, year over year. Dental plan customers increased from 11.25 million to 12 million year over year.

The company had a slight drop in customers 65-and-older who bought stand-alone, prescription drug plans — known as Medicare Part D — from 1.26 million to 1.2 million.

Goldman Sachs analyst Matthew Borsch wrote in a note to investors that the upside of earnings was evenly distributed across segments: global healthcare, life and disability insurance and supplemental benefits coverage.

“Overall, results look quite solid with no real surprises as investors by now appear to fully expect upside from managed care names,” Borsch wrote.

Since the start of the year through Aug. 1, Cigna has repurchased about 7.2 million shares of company stock for about $500 million.

Cigna increased its outlook for the year, saying consolidated adjusted income from operations will be in the range of $1.8 billion to $1.9 billion, or $6.25 to $6.65 per share.

Cigna is headquartered in Bloomfield and employs about 4,100 in Connecticut.

Shares of the company’s stock were down 56 cents to $77.27 on Thursday.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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One thought on “Cigna Reports Strong Earnings, Increased Customer Base

  1. Joe Oberman

    The difference between wealthy and lower middle class workers is that lower middle class workers aren’t scheming ways to keep wages lower for the wealthy class of working people.

    Democrat & Republican politicians have failed the working class by rescinding or amending employee labor laws which allows BIG Businesses to greatly benefit from reduced employee protection due the working class for medical, sick, vacation, holidays and wage benefits. Big Businesses will eliminate a department by reclassifying it with a new department or job title and then lay off to force an already member of their company to reapply for the same job with a falsely claimed lay off, this is WRONG. Politicians from both parties can enact laws to protect employee(s) from an illegally unjustified lay off. Shame on both political parties for allowing BIG Businesses to reduce wages in this manner. The term lay off should only apply if the job NO longer exists and not by reclassification of a department or job title.

    Hence, the false lay off practice should have politicians up in arms and enact a new federal labor law making it FRAUDULENT, a CRIME and ILLEGAL to falsely eliminate a job or department title and offer a reclassified job as the same job, even if they add one or several new job requirements, the job is overall the same. Our Government sorely needs a new federal labor law enacted to PROTECT short and long term employees from this fraudulent lay off practice by unscrupulous employers. In addition to this new labor law… Employers can not require employee(s) to reapply for the ‘same work’ reclassified job or re-titled department, since they are already an employee of said company. Companies must offer them the new job without lay offs or lost scaled wages earned by a senior employee(s). There is something seriously wrong with our politicians… politicians who side with unscrupulous big businesses that practice laying off their employees falsely without just cause. Politicians have become as corrupt as their unscrupulous business friends, who have perfected this fraudulent wage reduction method against NON-UNION employees.

    Yet, state & town politicians CAN NOT themselves reclassify their Police & Fire department or its job titles and lay off their employees only later to inform them they have to reapply for the same jobs under a new department/job titles. There is no equal JUSTICE from our political system to penalize employers, because a fair employee labor law would penalize (themselves) state & town governments. Just ask Detroit’s politicians were all the money went. Tax rates continue to go higher for the lower middle & poor workers. Meanwhile, BIG Businesses have perfected their employee wage reduction method. Shame on ALL corruptible politicians who have allowed BIG Business to conduct themselves in this shameful wage reduction method.

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