Cigna Lifts Full-year Outlook Yet Again As Q2 Results Top Estimates - Update

(RTTNews) - Cigna Corp. (CI) Thursday reported a higher second-quarter profit, as the health insurer was benefited by revenue and earnings growth in each of its business segments. The results also reflected favorable medical costs and operating expenses. Adjusted earnings as well as revenues exceeded analysts' expectations.

The company also lifted its full-year 2013 earnings view yet again. While reporting its first-quarter results in May, Cigna had raised its outlook for adjusted income from operations.

David Cordani, president and chief executive officer stated, "Our performance this quarter continues Cigna's track-record of attractive financial results driven by the effective execution of our strategy across all of our business lines."

Cigna's shareholders' net income for the quarter increased to $505 million or $1.76 per share from $380 million or $1.31 per share in the previous year.

The company said its recent-quarter results included a loss of $24 million after-tax, or $0.08 per share, related to transaction costs associated with its previously announced pharmacy benefits arrangement with Catamaran.

Adjusted income from operations was $1.78 per share, while the company posted $1.49 per share a year earlier. On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.60 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 8 percent to $7.98 billion from $7.42 billion in the prior-year quarter. Eleven analysts had consensus revenue estimate of $7.38 billion for the quarter.

The increase in revenues reflected growth in premiums and fees of 5 percent in Global Health Care, 35 percent increase in Global Supplemental Benefits and 10 percent rise in Group Disability and Life, driven by continued growth in the firm's targeted customer segments.

Premiums and fees climbed to $7.17 billion from $6.65 billion a year ago.

Cigna's Global Medical Customers as at June 30, climbed to 14.29 million from 13.84 million in the same period last year.

For full year 2013, the company now expects adjusted income from operations to be in the range of $1.8 billion to $1.9 billion, or $6.25 to $6.65 per share, up from the prior estimate of $1.735 billion to $1.865 billion, or $6.00 to $6.45 per share.

Analysts expect the company to report earnings of $6.49 per share for the year.

CI closed Wednesday's regular trading at $77.83 on the NYSE. In Thursday's pre-market, the shares are currently up 1.77 percent.