Cigna Q3 Adj. Profit Tops View; Updates 2016 Outlook

(RTTNews) - Health insurer Cigna Corp. (CI) reported that its shareholders' net income for the third quarter of 2016 declined to $456 million, or $1.76 per share, from $547 million or $2.10 per share, for the third quarter of 2015.

"Cigna's third quarter financial results are driven by our focus on affordable solutions and quality health outcomes for our customers and clients," said David M. Cordani, President and Chief Executive Officer.

Third quarter 2016 shareholders' net income included special item charges of $71 million after-tax, or $0.28 per share, for transaction costs related to Cigna's proposed combination with Anthem and a litigation matter, while third quarter 2015 shareholders' net income included $29 million after-tax, or $0.11 per share, of transaction costs related to Cigna's proposed combination with Anthem.

Cigna's adjusted income from operations for the third quarter of 2016 was $503 million, or $1.94 per share, compared with $593 million, or $2.28 per share, for the third quarter of 2015. Analysts polled by Thomson Reuters expected the company to report earnings of $1.91 per share. Analysts' estimates typically exclude special items.

Total revenues in the quarter were $9.9 billion, an increase of 5% over third quarter 2015, driven by continued growth in Cigna's targeted customer segments. Wall Street expected revenues of $9.84 billion.

Cigna's outlook for full year 2016 consolidated adjusted income from operations is in the range of $2.025 billion to $2.095 billion or $7.80 to $8.05 per share. Cigna's outlook excludes the impact of additional prior year reserve development and potential effects of any future capital deployment. Wall Street currently is looking for fiscal year 2016 earnings of $7.99 per share.

The company said in July that it expected consolidated adjusted income from operations to be in the range of $2.02 billion to $2.11 billion, or $7.75 to $8.10 per share.