November 1, 2018

Cigna’s 3Q profits jump 38% ahead of Express Scripts purchase

HBJ FILE PHOTO
HBJ FILE PHOTO
Cigna CEO and President David M. Cordani.

Bloomfield health insurer Cigna posted a 37.8 percent increase in third quarter profits largely due to commercial business growth and premium increases it says are consistent with market trends.

For the three months ended Sept. 30, the insurer on Thursday reported net income of $772 million, or $3.14 a diluted share, vs. $560 million, or $2.21 a diluted share, it netted in the same quarter last year.

Total revenues rose to over $11.4 billion, up 8.5 percent from the $10.4 billion it recorded in the year-ago period.

The insurer said its medical customer base soared to 16.3 million, which represents an increase of 363,000 customers in 2018.

Cigna has posted an increase in profits each quarter this year, accruing net income of almost $2.5 billion in 2018.

Cigna raised its full-year earnings outlook to the range of $3.49 billion to $3.54 billion, or $14.20 to $14.40 per share.

During the third quarter, the U.S. Department of Justice (DOJ) Antitrust Division cleared Cigna's proposed $67 billion acquisition of pharmacy benefits manager Express Scripts. The approval was a major hurdle for Cigna as it eyes completing the deal by year-end.

The deal has scored approval from 23 state regulatory bodies, and requires six more and other customary closing conditions, Cigna CEO and President David Cordani said in an earnings conference call Thursday.

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