The Cigna Group has reported net income of $1.3bn or $4.24 a share in the first three months of this year, a 6% rise from $1.2bn or $3.73 a share in the same quarter of 2022.
However, the US-based health insurer’s adjusted income from operations dropped 17% to $1.6bn from $1.9bn.
The fall was the result of the absence of income from divested businesses coupled with reduced net investment income, stated the firm.
Total revenues in the quarter were 6% higher than the prior year at $46.5bn, while adjusted revenues rose 5%.
This rise was largely driven by Evernorth Health Services and Cigna Healthcare.
The firm’s adjusted SG&A expense ratio stood at 7.6% in Q1 2023, versus 7.3% in the same period last year. Debt-to-capitalisation ratio was 42.2% as of 31 March 2023.
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In the Evernorth Health Services segment, adjusted income from operations, pre-tax in Q1 2023 was 1% higher than in Q1 2022, driven by growth in specialty pharmacy.
Adjusted revenues in the segment rose 8% year-on-year.
In the Cigna Healthcare segment, adjusted income from operations, pre-tax fell 14% due to a higher adjusted expense ratio.
The segment’s adjusted revenues increased 12% on higher specialty contributions, and customer growth in US Government and US Commercial.
Cigna chairman and CEO David Cordani said: “Our strong results in the first quarter demonstrate how our company continues to execute well, while also introducing innovative, market-leading solutions that improve clinical outcomes, affordability and transparency for the benefit of those we serve.”
For the full year 2023, Cigna projects adjusted revenues of $188bn and adjusted income from operations of $7.36bn or $24.70 a share.