Photo | Cigna
Cigna headquarters in Bloomfield.
August 1, 2019
Cigna’s 2Q profits soar on Express Scripts biz
HBJ File Photo
Cigna CEO and President David M. Cordani.
By Joe Cooper
Bloomfield health insurer Cigna on Thursday said its second-quarter profits jumped 75 percent thanks to its growing pharmacy benefits unit and commercial health plans.
For the quarter ended June 30, Cigna posted net income of $1.4 billion, or $3.70 a diluted share, up from $806 million, or $3.29 per share, in the second quarter of 2018.
Revenues in the April-June period more than tripled to $38.8 billion due in part to its $67 billion acquisition of St. Louis-based pharmacy-benefits manager Express Scripts, which allows Cigna’s customers to access new pharmacy benefit services.
That drove Cigna’s pharmacy revenues up from $8.7 million to $75.1 million, and its pharmacy customer case, meantime, climbed by 1.9 million customers to 17 million.
Adjusted earnings per share increased to $4.30, beating FactSet’s estimates of $3.74 a share for the quarter.
Cigna’s share price of $172.50 was up 1.5 percent Thursday as of 9 a.m.
Cigna also raised its full-year profit forecast to a range of $16.60 to $16.90, which represents a 17 percent to 19 percent increase compared to 2018. The insurer also upped its revenue forecasts to a range of $136 billion to $137 billion.
“As Cigna accelerates our focus on whole person health, our strong second quarter results reflect the value we deliver to customers and clients, and our consistent execution in a dynamic environment,” said Cigna CEO and President David M. Cordani.
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