Cigna Q1 Results Top Estimates, Boosts 2015 EPS Outlook

(RTTNews) - Health insurer Cigna Corp. (CI) reported Thursday a profit for the first quarter that edged up 1 percent from last year, drive by contributions across its diversified portfolio of businesses amid improved premiums and fees. Global medical customers and policies also improved.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised adjusted earnings guidance for the full-year 2015, while maintaining annual revenue growth outlook.

"Cigna continues to deliver differentiated, personalized and affordable solutions, creating value for our customers and clients. We continue our focus on delivering innovative products and services centered around unique local market needs, driving growth in new and existing markets," President and CEO David Cordani said in a statement.

The Philadelphia, Pennsylvania-based company reported shareholders' net income of $533 million or $2.04 per share for the first quarter, higher than $528 million or $1.92 per share in the prior-year quarter.

Excluding special items, adjusted income from operations for the quarter was $513 million or $1.96 per share, compared to $533 million or $1.94 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.84 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 11 percent to $9.47 billion from $8.50 billion in the same quarter last year. Twelve Wall Street analysts were looking for revenue of $9.28 billion for the quarter.

The revenue growth was primarily driven by continued growth in Cigna's targeted customer segments.

Premiums and fees increased to $7.40 billion from $6.78 billion a year ago, and mail order pharmacy revenues rose to $578 million from $495 million a year ago.

Net investment income totaled $276 million, down from $277 million, while other revenues grew to $72 million from $66 million in the year-ago quarter. Net realized investment increased to $73 million from $42 million last year.

Segment wise, global health-care premiums and fees rose 12 percent to $6.73 billion, and global supplemental benefits premiums and fees totaled $735 million, up 8 percent from last year. Group disability and life premiums and fees increased 7 percent to $976 million from a year ago.

As of the end of the first quarter, global medical customers grew to 14.65 million from 14.17 million, and policies increased to 12.53 million from 12.02 million at the end of the year-ago quarter.

Looking ahead to fiscal 2015, Cigna raised guidance for consolidated adjusted income from operations to a range of $8.15 to $8.50 per share from the prior forecast of $8.00 to $8.40 per share, while continuing to project revenue growth of 8 to 10 percent.

Street is currently looking for full-year 2015 earnings of $8.44 per share on annual revenue growth of 9.5 percent to $38.07 billion.

CI closed Wednesday's regular trading session at $126.68, down $4.08 on a volume of 3.38 million shares. In the past 52-week period, the shares have been trading in a broad range of $81.70 to $135.00.