Cigna 3Q Profit Rises 92% Amid Prior Year Losses
DOW JONES NEWSWIRES
Cigna Corp.'s (CI) third-quarter earnings soared 92% amid declining medical
enrollments and prior-year losses at its reinsurance business that is being
wound down. Results exceeded analysts' expectations.
Cigna, like its peers, is experiencing upward pressure on medical costs and
downward pressure on commercial enrollment. The health insurer has been cutting
costs, and in July was considering making more reductions to narrow the gap in
per-member expenses with some key-managed care rivals.
The company reported a profit of $329 million, or $1.19 a share, up from $171
million, or 62 cents a share, a year earlier. Excluding items such as the
reinsurance losses, earnings rose to $1.13 from 89 cents.
Revenue decreased 5.9% to $4.5 billion as premiums and fee revenue fell 3.5%.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.03 on
revenue of $4.59 billion.
Medical membership fell 6.7% to 11.1 million as of Sept. 30 from a year
earlier and dropped 85,000 during the quarter.
Shares of Cigna, which affirmed its 2009 forecasts, closed Wednesday at $29.78
and didn't trade premarket. The stock is up 77% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
(END) Dow Jones Newswires
11-05-090641ET
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