Cigna Group on Friday reported a $1.3 billion profit for the first quarter of 2025, a sharp turnaround from a year-earlier loss, as the health insurer benefited from strong performance in its Evernorth division and began to step away from costly Medicare Advantage operations.
The Bloomfield, Conn.-based company said earnings totaled $4.85 per share on a net income basis, compared with a loss of $277 million, or 97 cents per share, in the same period last year. Adjusted earnings reached $6.74 per share, surpassing analysts’ expectations.
Cigna also raised its full-year forecast, projecting consolidated adjusted income from operations of at least $29.60 per share, a 10-cent increase from previous guidance. Revenue rose 14% to $65.5 billion, driven largely by growth in Cigna’s Evernorth Health Services unit, which includes Express Scripts, one of the nation’s largest pharmacy benefit managers.
The results offered reassurance to investors still reeling from UnitedHealth Group’s recent forecast revision, which stoked concerns about rising medical costs across the industry. Shares of several major insurers had slumped amid those worries, but Cigna’s first-quarter report helped ease fears of a sector-wide crunch.
Cigna’s ability to manage medical expenses was in focus, as its medical cost ratio — a key measure of what proportion of premium revenue is spent on care — came in at 82.2%. While that figure was higher than the 79.9% reported a year ago, it was better than some analysts had feared.
The increase, the company said, was mainly due to “expected higher stop loss medical costs” and the lingering impact of Medicare Advantage operations that Cigna has since divested. The sale of its Medicare businesses to Health Care Service Corporation (HCSC), parent of several Blue Cross and Blue Shield plans, closed in late March. That transaction included Medicare Advantage, Medicare Part D, supplemental benefits and CareAllies, a medical services administration business.
The sale fetched $3.3 billion and marked a significant strategic shift for Cigna, which had expanded aggressively into Medicare over the past decade. But as rising costs and regulatory tightening squeezed margins across the industry, the company opted to exit the market.
Cigna had already begun scaling back its Medicare Advantage footprint in 2024, pulling out of dozens of plans in eight states — a move that impacted around 5,400 members, mostly in Florida. The company’s decision to fully divest came as competitors like CVS Health and Humana also reevaluated their Medicare strategies in the face of tougher economics.
With the Medicare business now off its books, Cigna is doubling down on its commercial health insurance plans and Evernorth, which has emerged as a cornerstone of the company’s profitability. Executives pointed to continued strength in specialty pharmacy sales, including increased demand for biosimilars to blockbuster drugs like Humira, as key drivers of performance.
At the end of the quarter, Cigna reported 18 million medical customers, a 6% decrease from December 2024, largely due to the Medicare-related divestiture.
“Our strong first quarter results and increase in outlook for full-year earnings reflects the strength of our Evernorth Health Services and Cigna Healthcare growth platforms in a dynamic environment,” said David M. Cordani, the company’s chairman and chief executive, in a statement accompanying the earnings release.
Cigna’s results further distinguish its trajectory from rivals still contending with the turbulence of Medicare Advantage, a market that once promised outsized growth but has become increasingly unpredictable. The company now appears poised to pursue a more stable path focused on employer-sponsored insurance and the expanding health services sector.
