Cigna Corp.'s first quarter earnings dropped 10 percent, as the health insurer took a $28-million, after-tax charge tied to its acquisition of fellow insurer HealthSpring Inc., which closed early in the quarter, The Associated Press reports.
The Bloomfield company also recorded a $13-million after-tax litigation charge and absorbed an $11 million loss from one of its discontinued businesses, but nevertheless raised its 2012 earnings forecast.
All told, the insurer earned $371 million, or $1.28 per share, in the three months that ended March 31. That compares with net income of $413 million, or $1.51 per share, in last year's first quarter, when Cigna also recorded a $24-million gain from the completion of an Internal Revenue Service examination.
Revenue climbed 25 percent to $6.79 billion in the 2012 quarter.
Analysts expected, on average, earnings of $1.30 per share, on $6.59 billion in revenue, according to data provider FactSet.