(Reuters) – Cigna Corp reported better-than-expected first-quarter profit on Friday, helped by growth in its health services unit that includes the pharmacy benefits management business, and modestly raised its full-year adjusted profit forecast.
Health insurers have been pressured due to volatile medical costs during the pandemic, some of which was offset with people postponing non-urgent medical procedures.
Evernorth, Cigna’s health services unit which has helped drive growth in the past few quarters, reported adjusted revenue of $33.59 billion in the quarter ended March 31 compared to $30.62 billion a year earlier.
Cigna moderately raised its forecast for 2022 adjusted profit from operations to at least $22.60 per share, from its prior estimate of a minimum of $22.40 per share.
Larger rivals UnitedHealth Group and Anthem also raised their 2022 adjusted profit view last month, with industry bellwether UnitedHealth signalling that although demand for deferred procedures was approaching normal levels, it had not increased as feared, leading to lower claims and costs.
Cigna’s medical care ratio (MCR), the amount spent on medical claims versus income from premiums, worsened to 81.5% in the reported quarter, from 80.9% a year earlier, partly due to higher medical costs.
Excluding special items, Cigna’s income from operations was $6.01 per share, above analysts’ average estimate of $5.18, according to Refinitiv IBES data.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)
