Insurer Cigna's 1Q profit soars 52 percent

[May 05, 2011]  INDIANAPOLIS (AP) -- Cigna Corp. said Thursday its first-quarter net income jumped 52 percent, as the managed care company saw earnings growth from its main businesses and raised its 2011 profit forecast.

The Philadelphia insurer earned $429 million, or $1.57 per share, in the three months that ended March 31. That's up from the $283 million, or $1.02 per share, last year. Revenue climbed 4 percent to $5.41 billion from $5.21 billion.

Adjusted income from operations, which excludes some one-time items, totaled $1.37 per share.

Analyst surveyed by FactSet expected earnings of $1.09 per share on $5.49 billion in revenue.

Cigna, the fourth-largest health insurer based on enrollment, operates health care, group disability and life segments in the United States. It also sells individual insurance in several countries and operates an expatriate business that provides coverage for people living outside their home countries.

After-tax earnings from its biggest segment, health care, climbed 47 percent to $246 million. The performance was helped in part by a $22 million gain because claims leftover from last year came in below the insurer's estimates. Health care medical membership increased only slightly to 11.4 million.

After-tax earnings in its international business climbed 7 percent to $77 million, as premiums and fees were helped by the company's acquisition of Vanbreda International last year.

The insurer now expects full-year adjusted earnings of $4.65 to $5 per share, up from a range of $4.30 to $4.70 per share the company had forecast in February.

Analysts expect earnings of $4.73 per share.

Cigna's performance follows a trend set by other big insurers during the first quarter. UnitedHealth Group Inc., WellPoint Inc., Aetna Inc. and Humana Inc. have already reported earnings that beat Wall Street expectations and raised their 2011 forecasts.

[Associated Press]

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