Cigna beats profit expectations in Q3 results

However, it also predicted higher future costs related to COVID-19

Cigna beats profit expectations in Q3 results

Insurance News

By Ryan Smith

Cigna Corp beat quarterly profit estimates on Thursday and raised its full-year sales forecast, according to a Reuters report. The company’s higher-than-expected profits were driven by sales in its revamped health services unit.

Cigna also backed its adjusted profit forecast of US$20 to US$21 per share for next year, based on projections of steady growth in its pharmacy benefits management business, Reuters reported.

However, the company said it predicted higher medical costs related to the COVID-19 pandemic. It is also predicting growth in the unit that offers government-backed healthcare plans and Medicare Advantage plans for people over 65 and those with disabilities. The company expects its Medicare Advantage business to post a 10% to 15% growth in membership in 2021, Reuters reported.

For the last quarter, adjusted revenue from Cigna’s Evernorth unit – which includes Express Scripts, the pharmacy benefits management it purchased in 2018 – rose about 20% to US$29.83 billion thanks to a 22% hike in adjusted pharmacy prescription volumes.

Cigna raised its 2020 revenue forecast to about US$158 billion (SG$208 billion) from its previous estimate of US$154 billion to US$156 billion, Reuters reported. It also adjusted its profit expectations to full-year earnings of US$18.30 to US$18.60 per share, compared with previous estimates of US$18 to US$18.60.

Excluding items, Cigna earned US$4.41 per share, blowing past estimates of US$4.24 per share, Reuters reported.

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