Cigna on Thursday posted a quarterly profit of $1.6 billion thanks to a rise in health plan membership … [+] and continued growth in the company’s Evernorth health services business, the company said on August 3, 2022. In this photo, an American flag flies. Cigna Corp. at the flagship company’s headquarters in Bloomfield, Connecticut, USA, on Tuesday, November 22, 2016. Photographer: Michael Nagle/bloomberg
Cigna on Thursday posted a quarterly profit of nearly $1.6 billion thanks to a surge in health plan membership and continued growth in Evernorth’s health services business.
Net income rose 6% in the second quarter to $1.56 billion, or $4.90 per share, compared with $1.46 billion, or $4.25, in the second quarter last year, the company’s earnings report said. Revenues, on the other hand, increased by 5%, to 45.5 billion dollars, from 43.1 billion dollars a year ago.
Cigna’s earnings and growing customer base contributed to the company’s decision to again raise its financial outlook for 2022. Cigna now says full-year 2022 consolidated earnings from operations will be “at least $7.165 billion, or at least $22.90 per share,” up 30 cents from its previous projection, the company said Thursday.
“Our focus on our clients, patients and customers continues to resonate in the marketplace as our strong results and positive momentum reinforce the value we are delivering,” said David Cordani, President and CEO. “Evernorth and Cigna Healthcare continue to drive our strong performance, and keep us focused on continuous innovation to achieve sustainable and differentiated growth.”
Cigna said its total medical customer base grew by 725,000 customers to 17.8 million “driven by growth in commercial fee-based customer relationships in the US,” the health insurer said. Growth in the commercial business helped offset declines in US government healthcare clients, “including the divestment of the Medicaid business.”
Meanwhile, Evernorth’s portfolio of operations, which includes the pharmacy benefit management companies that Cigna acquired with its 2018 acquisition of Express Scripts, continues to perform well. Second-quarter adjusted revenue increased 7% to $34.8 billion, driven by growth in pharmacy services and particularly specialty pharmacy, the company said.
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