Cigna Q2 Profit Climbs; Updates FY Adj. Earnings View - Quick Facts

(RTTNews) - Health insurer Cigna Corp. (CI) reported higher results for the second quarter of 2014, with each of its business segments posting strong revenue and earnings contributions.

For the tri-monthly period, Cigna recorded shareholders' net income of $573 million, or $2.12 per share, an increase, compared with $505 million, or $1.76 per share, in the year-ago quarter.

On an adjusted basis, income from operations for the recent quarter was $530 million, or $1.96 per share. The latest results reflect solid revenue growth, disciplined expense management and continued effective medical cost management. On average, 18 analysts polled by Thomson Reuters expected earnings per share of $1.84 for the quarter. Analysts' estimates typically exclude one-time items.

The Philadelphia, Pennsylvania-based firm's consolidated revenues were $8.73 billion, up 9%, compared with $7.98 billion in the second quarter 2013. Ten analysts estimated revenues of $7.61 billion for the quarter. Revenues reflect growth in premiums and fees of 8% in Global Health Care, 18% in Global Supplemental Benefits and 5% in Group Disability and Life, primarily driven by continued growth in Cigna's targeted customer segments.

For full year 2014, the company now estimates adjusted income from operations to be in the range of $1.94 billion - $2.0 billion, or $7.20 - $7.40 per share. Cigna's outlook excludes the potential effects of future capital deployment. Twenty analysts are currently looking for earnings per share of $7.31 in 2014.