Cigna’s Evernorth And Health Plan Growth Push Profits To $1.6 Billion

Cigna Thursday reported nearly $1.6 billion in quarterly profits thanks to rising health plan membership and continued growth of the company’s Evernorth health services business.

Net income rose 6% to $1.56 billion, or $4.90 per share, in the second quarter compared with $1.46 billion, or $4.25 per share, for second quarter of last year, the company’s earnings report said. Revenues, meanwhile, rose 5% to $45.5 billion compared to $43.1 billion in the year-ago period.

Cigna’s profits and growing customer base contributed to the company’s decision to raise its financial outlook for the rest of 2022 yet again. Cigna now says full year 2022 consolidated adjusted income from operations “is projected to be at least $7.165 billion, or at least $22.90 per share,” which is 30 cents more than an earlier projection, the company disclosed Thursday.

“Our focus on our customers, patients and clients continues to resonate in the market as our strong results and positive momentum reinforce the value we are delivering,” said David Cordani, chairman and chief executive officer. “Evernorth and Cigna Healthcare continue driving our strong performance, and our focus on ongoing innovation positions us for sustained, differentiated growth.”

Cigna said its total medical customer base grew by 725,000 customers to 17.8 million “driven by growth in U.S. commercial fee-based client relationships,” the health insurer said. The growth in the commercial business helped offset a decline in U.S. government health customers, “inclusive of the divestiture of the Medicaid business.”

Meanwhile, the portfolio of operations under Evernorth, which includes the pharmacy benefit management company Cigna bought with its 2018 acquisition of Express Scripts, continues to perform well. Second quarter adjusted revenues increased 7% to $34.8 billion due to growth in pharmacy services and specialty pharmacy in particular, the company said.