Earnings were slightly below the level analysts expected in the quarter, although Cigna said it topped its own forecast. The Bloomfield, Conn., company raised its full-year earnings guidance while also raising expectations for membership growth this year.
Results in the recent quarter got some help from the recognition of claims reserve that didn't have to be used in prior periods, analysts noted. This could raise some concern among investors, because earnings could have otherwise missed expectations more sharply, although that concern may be muted by the guidance boost, Wells Fargo analyst Peter Costa said.
Cigna shares—up 11% this year through Wednesday—fell 1.2% in early trading Thursday on the New York Stock Exchange.
The company in January closed on a $3.8 billion acquisition of Medicare-focused insurer HealthSpring Inc., pushing Cigna, which has traditionally focused more on commercial health insurance, further into a market for senior-focused plans. Managed-care firms have been bulking up in this area as baby boomers age and Medicare Advantage plans—the insurers' version of the government program—become more popular.
Cigna said its medical membership including customers in its international business rose 11% to 13.9 million from 12.5 million a year ago. The company now expects to add about 1.2 million members this year, up from its prior forecast for a 900,000 boost.
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Earnings were slightly below the level analysts expected in the quarter, although Cigna said it topped its own forecast. The Bloomfield, Conn., company raised its full-year earnings guidance while also raising expectations for membership growth this year.
Results in the recent quarter got some help from the recognition of claims reserve that didn't have to be used in prior periods, analysts noted. This could raise some concern among investors, because earnings could have otherwise missed expectations more sharply, although that concern may be muted by the guidance boost, Wells Fargo analyst Peter Costa said.
Cigna shares—up 11% this year through Wednesday—fell 1.2% in early trading Thursday on the New York Stock Exchange.
The company in January closed on a $3.8 billion acquisition of Medicare-focused insurer HealthSpring Inc., pushing Cigna, which has traditionally focused more on commercial health insurance, further into a market for senior-focused plans. Managed-care firms have been bulking up in this area as baby boomers age and Medicare Advantage plans—the insurers' version of the government program—become more popular.
Cigna said its medical membership including customers in its international business rose 11% to 13.9 million from 12.5 million a year ago. The company now expects to add about 1.2 million members this year, up from its prior forecast for a 900,000 boost.
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