Cigna Corp., which last week agreed to sell itself to Anthem
Inc. for $48 billion, logged better-than-expected profit in its
second quarter amid medical cost management and customer
growth.
The Bloomfield, Conn., insurer said it had 14.77 million total
medical customers at the end of the quarter, compared with 14.25
million a year earlier and 14.65 million in the previous
quarter.
In Cigna's global health-care business, premiums and fees
revenue grew 10% to $6.73 billion, driven by customer growth in its
commercial and government businesses and rate actions.
Overall, Cigna reported earnings of $588 million, or $2.26 a
share, up from from $573 million, or $2.12 a share, a year earlier.
Excluding certain items, per-share earnings from operations grew to
$2.55 a share from $2.07 a share a year ago.
The results topped analysts' expectations for $2.31 a share in
profit and were above the preliminary forecast Cigna gave last
week.
The company's total revenue grew 8.7% to $9.49 billion.
Excluding net realized investment gains, operating revenue was
$9.47 billion, up 9.3% from a year earlier.
Analysts polled by Thomson Reuters had forecast $9.53 billion in
revenue.
Excluding net realized investment gains, operating revenue was
$8.67 billion, up 9.3% from a year earlier.
The Bloomfield, Conn., company's deal with Anthem would combine
the second- and fifth-largest health insurers by revenue, creating
a company with a huge footprint in commercial insurance, the type
of coverage provided to employers and consumers.
The deal capped months of merger frenzy among top U.S. health
insurers that could result in a dramatic reshaping of the industry.
Aetna Inc. has also agreed to buy Humana Inc. for $34 billion.
The biggest companies are seeking more cost efficiency and scale
as the health-care landscape changes because of the Affordable Care
Act and other factors. Of the current major health insurers, only
UnitedHealth Group Inc., the largest by revenue, is sitting out the
merger wave, at least so far.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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