Cigna reported $2.8 billion in third quarter 2022 profits thanks to the sale of the company’s life . [+] benefits business, rising health plan membership and continued growth of the company’s Evernorth health services business. In this photo is the Cigna Health Benefits application is seen in the App Store on an Apple Inc. iPhone in Washington, D.C., U.S., on Thursday, April 26, 2018. ( Photographer: Andrew Harrer/Bloomberg)
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Cigna Thursday reported $2.8 billion in quarterly profits thanks to the sale of the company’s life benefits business, rising health plan membership and continued growth of the company’s Evernorth health services.
In July, Cigna completed the sale of its life, accident and supplemental benefits businesses to Chubb for more than $5 billion in cash. The divestiture of the businesses, which are located across a half dozen Asia-Pacific markets, will allow Cigna to focus on its U.S. healthcare businesses.
Fueled by an “after-tax special item gain” of $1.4 billion from the sale of the businesses to Chubb, third quarter net income jumped to $2.8 billion, or $8.97 per share, compared with $1.6 billion, or $4.80 per share, for third quarter of last year. Revenues, meanwhile, rose 2% to nearly $45.3 billion compared to $44.3 billion in the year-ago period.
“We built on our momentum from the first half of 2022 with strong execution in the third quarter across our businesses and a continued focus on serving customers and clients with our differentiated health and well-being solutions,” Cigna chairman and chief executive David Cordani said. “We’re leveraging capabilities across Evernorth and Cigna Healthcare as we innovate to further improve affordability, guide patients to the most effective treatments and improve the vitality of the customers we serve.”
Cigna’s profits and growing customer base contributed to the company’s decision to raise its financial outlook for the rest of 2022 yet again. Cigna now says full year 2022 consolidated adjusted income from operations “is projected to be at least $7.23 billion, or at least $23.10 per share,” which is 20 cents more than an earlier projection, the company said Thursday