Cigna Beats 2Q Expectations With Aid From Evernorth

Cigna Corp. had a better second quarter than equities analysts expected, leading to positive but cautious reviews by Wall Street on the health insurer’s outlook for the rest of the year. Cigna executives credited strong returns from the payer’s Evernorth health services division, saying that they offset higher-than-expected costs related to COVID-19.

Cigna took in total revenues of $43.1 billion in the second quarter, and adjusted income from operations was $1.8 billion, or $5.24 per share. That earnings per share figure beat Wall Street’s projection of $4.96, according to Citi analyst Ralph Giacobbe. However, Cigna’s reported 85.4% medical loss ratio was higher than the 81.8% projected by analysts.

Continuing a trend from the first quarter, when Evernorth drove strong results for the firm, the health services segment was the biggest contributor to profits. Evernorth contributed an adjusted profit margin of 4.3%, or $1.4 billion in the second quarter. Giacobbe wrote in an Aug. 5 note to investors that Evernorth’s “revenue, earnings, and margin [were] all better than [Citi’s] estimates.”

© 2021 MMIT

Peter Johnson

Peter has been a reporter for nearly a decade. Before joining AIS Health, Peter covered a wide variety of topics in his hometown of Seattle, where he continues to live. Peter’s work has appeared in publications including The Atlantic and The Stranger. Peter attended Colby College.

Related Posts
October 22

With COVID Testing Set to Surge, Insurers Fret About Costs

READ MORE‘Dance-Partners.jpg
October 22

Could Payers, Plan Sponsors Pick Retail ‘Dance Partners?’

READ MORE‘Virtual-First-Health-Plan-Fray.jpg
October 22

UnitedHealthcare, Cigna Join ‘Virtual-First’ Health Plan Fray

Read More


Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today