Cigna Q4 Results Top Estimates, Guides 2015 EPS In Line

(RTTNews) - Health insurer Cigna Corp. (CI) reported Thursday a profit for the fourth quarter that increased 29 percent from last year, which was weighed down by charges, as well as revenue growth amid improved premiums and fees across its operating segments.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and revenue growth guidance for the full-year 2015, in line with Street view.

The Philadelphia, Pennsylvania-based company reported shareholders' net income of $467 million or $1.77 per share for the fourth quarter, higher than $361 million or $1.29 per share in the prior-year quarter.

Results for the year-ago quarter included a special item which resulted in losses of $0.15 per share related to costs associated with an organizational efficiency plan.

Excluding special items, adjusted income from operations for the quarter was $446 million or $1.69 per share, compared to $387 million or $1.39 per share in the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.67 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew to $8.93 billion from $8.15 billion in the same quarter last year. Ten Wall Street analysts were looking for revenue of $8.89 billion for the quarter.

Premiums and fees increased to $7.93 billion from $7.28 billion a year ago, and mail order pharmacy revenues rose to $614 million from $494 million a year ago.

Net investment income totaled $303 million, up from $291 million, while other revenues edged down to $60 million from $61 million in the year-ago quarter. Net realized investment increased to $24 million from $21 million last year.

Segment wise, global health-care premiums and fees rose 9 percent to $6.25 billion, and global supplemental benefits premiums and fees totaled $726 million, up 10 percent from last year. Group disability and life premiums and fees increased 5 percent to $920 million from a year ago.

As of the end of the fourth quarter, global medical customers grew to 14.46 million from 14.07 million, and policies increased to 12.34 million from 11.87 million at the end of the year-ago quarter.

Looking forward to fiscal 2015, Cigna expects consolidated adjusted income from operations in a range of $8.00 to $8.40 per share, on projected revenue growth of 8 to 10 percent. Street analysts are looking for full-year 2015 earnings of $8.17 per share on annual revenue growth of 9 percent to $37.89 billion.

"We continue to leverage Cigna's capabilities across our diversified businesses, effectively deploy capital, and deliver personalized and innovative solutions in existing and new growth markets to create sustained, long-term value," President and CEO David Cordani said.

CI closed Wednesday's regular trading session at $110.10, up $1.76 on a volume of 1.76 million shares. In the past 52-week period, the shares have been trading in a broad range of $73.47 to $112.95.