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Cigna Misses Earnings Projections, Raises Outlook for Annual Profits

Source: The Hartford Courant

Posted on 31 Oct 2011

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Bloomfield-based Cigna Corp. reported an increase in its customer base and revenue, but missed earnings projected by Wall Street analysts.

Adjusted income from operations was $325 million, or $1.20 per share, for the quarter, compared with $299 million, or $1.10 per share, during the same period a year ago. Analysts polled by Thomson Reuters expected a profit of $1.23 per share.

Quarterly net income was $200 million, or 74 cents per share, compared with $307 million, or $1.13 per share during the same period a year ago. The health insurer's earnings were gouged by Cigna's reinsurance segment, which is a discontinued operation in run-off. The reinsurance business had a $179 million loss, or 66 cents per share, compared with a $44 million loss, or 16 cents per share, mostly due to low interest rates and volatility in equity markets.

Revenue from premiums and fees increased 3 percent to $4.7 billion in the quarter from $4.6 billion during the same period a year before.

Cigna had 11.47 million policyholders in its health plans as of Sept. 30, up one-fifth of 1 percent from 11.44 million last year. The company increased its membership in behavioral care coverage to 19.9 million, up 10 percent from 18.1 million last year. Dental membership was up 6 percent to 10.9 million and pharmacy membership was down 2 percent to 6.4 milli