Cigna 2Q profit increases 13 percent, tops forecast

Markets Associated Press

Cigna's second-quarter profit rose 13 percent to top Wall Street expectations as the health insurer collected more in fees and premiums.

Continue Reading Below

The Bloomfield company also boosted its outlook though shares slumped 6 percent in early trading Thursday as markets sold off sharply.

Net income reached $573 million, or $2.12 per share, up from $505 million, or $1.76 per share, in the same quarter a year ago.

Earnings, adjusted for investment gains, were $1.96 per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.85 per share.

Revenue was $8.73 billion compared with $7.98 billion in the same quarter a year earlier and also topped Wall Street estimates. Analysts expected $8.25 billion, according to Zacks.

Premiums and fees revenue climbed more than 8 percent to $7.76 billion.

Continue Reading Below

Cigna lifted its adjusted earnings projections for the year to between $7.20 and $7.40, up from a range of $7.05 to $7.35 a share earlier this year.

Shares of Cigna Corp. fell $5.79 to $87.71 in morning trading Thursday.

88.03

-5.47 (-5.85