Cost-Control Efforts Pay Off for Cigna in Second Quarter
August 5
Cigna Corp.’s ability to rein in medical costs during the second quarter of 2022 impressed equities analysts and led the health insurer on Aug. 4 to surpass the Wall Street consensus earnings per share (EPS) estimate while raising its full-year EPS outlook.
Cigna posted “the largest MLR beat among MCOs this quarter,” with its medical loss ratio of 80.7% coming in 220 basis points below the consensus estimate, Evercore ISI analyst Michael Newshel pointed out in a note to investors. That comes after a 110 basis-point beat in the first quarter of 2022, he added.
And SVB Securities analyst Whit Mayo observed that “medical costs were well-controlled during the quarter,” with Cigna’s MLR “driving the bulk of the [company’s] outperformance.”
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