Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs
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The Cigna Group swung to a first quarter profit of $1.3 billion as the health insurer gains control … More of rising medical costs and its Evernorth business continues to perform well., the health insurer reported May 1, 2025. The Cigna Group headquarters in Bloomfield, Connecticut, US, on Friday, Oct. 27, 2023. Photographer: Joe Buglewicz/Bloomberg © 2023 Bloomberg Finance LP The Cigna Group swung to a first quarter profit of $1.3 billion as the health insurer begins to gain control of rising medical costs and its Evernorth business continues to perform well. Cigna, which includes Evernorth Health Services and one of the nation’s largest pharmacy benefit management companies, said first quarter net income was $1.3 billion, or $4.85 per share, compared with a net loss of $277 million, or 97 cents per share, in the first quarter of last year. Total revenues for the first quarter jumped 14% to $65.5 billion “reflecting growth of existing client relationships and strong specialty pharmacy growth in Evernorth Health Services,” Cigna said in its first quarter earnings report released Friday. The potential for future growth and a health insurance business with potentially lower costs thanks to a divestiture of Medicare-related businesses figured in Cigna’s newly disclosed financial outlook released Friday showing more promising earnings for the rest of 2025. Like other health insurers, Cigna has been grappling with rising medical costs and the first quarter was no different. Cigna’s medical cost ratio (MCR), which is the percentage of premium revenue that goes toward medical costs, was 82.2% for the first quarter of 2025 compared to 79.9% for first quarter of last year. “The increase for the first quarter was primarily driven by expected higher stop loss medical costs,” Cigna said in its report. Meanwhile, Cigna said its sale of its Medicare health benefits businesses…
Filed under: News - @ May 2, 2025 11:26 am