Cigna Q2 Results Top Estimates, Lifts FY14 Earnings View

(RTTNews) - Health insurer Cigna Corp. (CI) reported Thursday higher profit in its second quarter, boosted by improved premiums and fees in all divisions. Adjusted earnings and top line beat market estimates. Further, the company lifted its forecast for fiscal 2014 adjusted earnings.

For the tri-monthly period, Cigna recorded shareholders' net income of $573 million or $2.12 per share, higher than last year's $505 million or $1.76 per share.

Adjusted income from operations, which excluded certain items, for the recent quarter was $530 million or $1.96 per share, compared to $512 million or $1.78 per share in the prior year.

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 company attributed the increase in profit to solid revenue growth, disciplined expense management and continued effective medical cost management.

The Philadelphia, Pennsylvania-based firm's consolidated revenues were $8.73 billion, 9 percent higher than last year's $7.98 billion. Premiums and fees increased to $7.76 billion from $7.17 billion a year earlier. Ten analysts estimated revenues of $7.61 billion for the quarter.

According to the firm, the improved revenues reflected growth in premiums and fees of 8 percent in Global Health Care, 18 percent in Global Supplemental Benefits and 5 percent in Group Disability and Life, primarily driven by continued growth in Cigna's targeted customer segments.

Global Medical Customers, excluding limited benefits, was 14.247 million, compared to 14.112 million in the prior year.

Looking ahead for fiscal 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. Analysts are currently looking for earnings per share of $7.31 in 2014.

The company previously projected full-year adjusted income from operations in the range of $1.93 billion to $2.0 billion or $7.05 to $7.35 per share.

Further, the company continues to project global medical customer growth, excluding Limited benefits, of 1 percent to 2 percent for the year.

In pre-market activity, Cigna shares are gaining $0.94 or 1.01 percent, and trading at $94.44.