Cigna Q3 Profit Rises, Beats Forecasts

BOSTON, Nov 5 - Health insurer Cigna Corp (CI) posted third-quarter earnings on Thursday that topped expectations, as cost cuts offset the impact of declining membership.

Net earnings rose to $329 million, or $1.19 per share, from $171 million, or 62 cents per share, a year earlier.

Excluding one-time items, the company reported earnings of $1.13 per share. Analysts were expecting earnings of $1.03 a share, according to Thomson Reuters I/B/E/S.

Revenue fell 8 percent to $4.5 billion, hurt by intense competition for customers and the broader economic environment and job losses.

Cigna had 11.1 million members in the latest quarter, down from 11.9 million members a year ago. The company said it expects membership for the full year to decline 5 percent to 5.5 percent.

Still, the company reaffirmed in 2009 outlook. It expects revenue of $1 billion to $1.1 billion and earnings excluding one-time items of $3.80 to $4.00 a share.

Cigna closes the third-quarter earnings season for large U.S. health insurers. The companies posted largely better-than-expected quarterly profits, but their shares remain under pressure because of concerns that a healthcare overhaul under debate in Congress will dramatically undercut future profitability.

Source: Reuters

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