Cigna’s (CI) third quarter earnings plummeted 53% in third quarter, missing analysts’ expectations. 

The loss was mostly led by abysmal earnings in the insurer’s run-off reinsurance division that the company attributes to capital market turmoil. 

Profits sunk to $171 million, or 62 cents per share, from $365 million in the same quarter last year.  Revenues were up 10% to $4.9 billion, but the gain wasn’t large enough to counteract losses. 

The company says its operating earnings were 89 cents per share, below the $1.06 analysts polled by Thomson Reuters expected the insurer to earn. 

Cigna’s healthcare unit earned $187 million in the third quarter as compared with $172 million in the same period last year.  The company’s disability unit also saw slight gains during the quarter. 

The insurer’s international business receded in the third quarter, but did turn a profit. 

However, its run-off reinsurance business didn’t fare as well. The division lost $105 million in the third quarter, compared with gains of $39 million in the same period last year. 

“The results of our Run-off Reinsurance segment were adversely impacted this quarter by the capital market turmoil," Cigna Chairman and CEO Edward Hanway said in a release.

Run-off reinsurance, commonly referred to as tail insurance, is insurance that covers claims made after expiration of a policy.  Industry participants say these types of policies are created for occasional losses, but as businesses have been hit by financial turmoil and the slowing economy, these losses have become much more frequent.