Cigna profit up on strong revenue, growing customer base
Reprints
Cigna Corp. reported strong revenue gains and modest growth in net income for the first quarter of 2015, reflecting higher premiums and an increase in customers, the health insurer said Thursday.
In its earnings statement, Cigna reported net income of $531 million, up 0.4% from the year-ago period, for the quarter ended March 31.
The insurer’s total revenue grew 11% from the prior-year quarter to $9.47 billion.
Cigna’s global health care segment, its largest business unit encompassing its commercial and government businesses, posted premiums and fees of $6.73 billion, up 12.3% from the first quarter of 2014, according to the earnings report.
“We’ve had a good start to the year, with strong revenue and earnings contributions across our diversified portfolio of businesses driven by continued effective execution of our strategy,” Tom McCarthy, Cigna’s chief financial officer, said during a conference call Thursday with analysts.
Mr. McCarthy said the growth in the global health segment was driven by customer growth in the commercial and government businesses, specialty contributions and rate actions.
Cigna ended the quarter with 14.7 million global customers including about 200,000 new customers from Cigna’s acquisition of Piscataway, New Jersey-based QualCare Alliance Networks Inc., Mr. McCarthy said.
Cigna President and CEO David Cordani said the firm will drive growth and create value “through investments in our business, strategic mergers and acquisitions, and share repurchase,” as well as expanding to new distribution marketplaces, geographic and buying segments.
Read Next
-
Cigna profit beats Street on higher premium revenue
(Reuters) — Health insurer Cigna Corp. reported a better-than-expected quarterly adjusted profit from operations, driven by increased premium revenue and improved management of medical costs.
Related Stories
-
Ex-Cigna vice president named Connecticut insurance commissioner
-
Aetna, Cigna balk as Angelina effect spurs genetic cancer testing
