Cigna’s 2Q Profit Jumps 33 Percent
BLOOMFIELD, Conn. (AP) _ Cigna Corp.’s second-quarter net income jumped 33 percent, propelled by its core Global Health Care segment, and the health insurer raised its earnings forecast for 2013.
The Bloomfield, Conn., company’s stock edged up in premarket trading Thursday after it announced the results, which trumped Wall Street expectations for earnings.
Cigna said it earned $505 million, or $1.76 per share, in the three months that ended June 30. That compares to earnings of $380 million, or $1.31 per share, in last year’s quarter.
Adjusted earnings, which exclude one-time items, totaled $1.78 per share.
Revenue climbed more than 7 percent to $7.98 billion from $7.42 billion a year ago.
Analysts expected, on average, earnings of $1.59 per share on $8.06 billion in revenue, according to FactSet.
Cigna is the nation’s fourth largest health insurer based on enrollment. It sells health care, group disability and life coverage in the United States. The insurer also has an international segment that sells individual insurance in several countries and operates an expatriate business that covers people living outside their home countries.
Premiums and fees from the Global Health Care segment, which includes the insurer’s commercial and government businesses, climbed more than 5 percent to $5.69 billion. Adjusted operating income from that segment jumped nearly 10 percent to $403 million.
The insurer also said it absorbed an after-tax loss of $24 million in the quarter due to an agreement it reached to work with pharmacy benefits manager Catamaran Corp. In last year’s quarter, it booked a $51 million loss tied to a discontinued business.
Cigna now forecasts that full-year earnings will range between $6.25 and $6.65 per share, up from a forecast it made in May for $6 to $6.45 per share.
Analysts expect, on average, earnings of $6.46 per share.
The company’s shares rose 66 cents to $78.49 in premarket trading about 30 minutes before the market opening.