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Cigna, which agreed to be bought by larger rival Anthem Inc <ANTM.N>
in July, also raised the low end of its forecast for full-year
adjusted earnings to $8.40 per share from $8.30. The company
kept the top end of the guidance unchanged at $8.60.
However, Cigna said it expected revenue growth in 2016 could be
offset by reduction in customers in its individual plans, which
are sold on exchanges created under the U.S. Affordable Care
Act.
Last month, the U.S. government said that in the 37 states where
it runs the exchanges, the monthly premium rate of the benchmark
health insurance plan would increase 7.5 percent on average.
Cigna manages insurance plans for large companies and sells
health plans to individuals on government exchanges. It also
manages government Medicare and Medicaid plans.
The company said it had experienced favorable medical costs,
physician engagement and low utilization trend on an
year-to-date basis.
Revenue at Cigna's unit that sells commercial and government
plans rose 8 percent to $6.62 billion in the third quarter.
Membership in government plans increased 8.5 percent.
Net income attributable to the company's shareholders rose to
$547 million, or $2.10 per share, in the quarter ended Sept. 30,
from $534 million, or $2.01 per share, a year earlier.
On an adjusted basis, Cigna earned $2.28 per share, well above
the average analyst estimate of $2.20, according to Thomson
Reuters I/B/E/S.
Revenue rose 7.2 percent to $9.39 billion, missing estimates of
$9.52 billion.
(Reporting by Amrutha Penumudi in Bengaluru; Editing by Maju
Samuel and Saumyadeb Chakrabarty)
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