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Cigna slumps in fourth quarter

Cigna slumps in fourth quarter

Cigna Corp.'s net income for the fourth quarter of 2015 slumped nearly 9%, as medical costs related to its individual and government businesses weren't enough to offset gains in its commercial employer and specialty businesses, the health insurer said Thursday in a statement.

Net income fell 8.8% to $426 million in the three months ended Dec. 31, compared with the year-ago period, and included a $28 million charge related to Bloomfield, Connecticut-based Cigna's pending merger with rival Anthem Inc., according to the statement.

Revenues climbed 6.7% to $9.53 billion from the previous year, while revenue from premiums rose 8.0% to $7.46 billion.

Cigna's global health care segment, which includes its commercial and government businesses, recorded a slight drop in adjusted income from operations to $394 million, down 0.8% even as premiums and fees in the segment rose 7.5% to $6.72 billion.

Growth in premiums and fees reflected “ongoing growth in our self-funded programs, specialty products and government business,” Cigna said in its earnings release.

Total medical membership in the global health care segment climbed 3.8% to 14,999 members at the end of 2015 compared with the previous year.

For the full year, Cigna's net income decreased slightly at 0.4% to $2.09 billion compared with 2014.

Revenues for the year reached $37.88 billion, up 8.5% from the previous year, and revenues from premiums rose 8.9% to $29.64 billion.

“The strong results we delivered in 2015 reflect our proven ability to create sustained value for customers and clients,” Cigna President and CEO David M. Cordani said in the statement. “The effective execution of our global strategy and our differentiated capabilities provide us with strong momentum as we begin 2016. Our pending combination with Anthem will further accelerate our strategy to improve quality, choice, and affordability in the marketplace.”

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