Cigna Continues to Ride Express Scripts Merger For Strong Revenues

The insurer's adjusted revenues were $35.8 billion, more than triple compared to the same metric this time last year.

Cigna Corp. produced $38.5 billion in total revenues during Q3, a $27 billion improvement compared to its total revenues in Q3 2018. 

The Bloomingfield, Connecticut-based insurer's adjusted revenues were $35.8 billion, more than triple compared to the same metric this time last year.

Cigna's adjusted income from operations was $1.71 billion, nearly double the $945 million adjust income from Q3 2018, while its net income per share rose $0.43 to $3.57. 

Related: Cigna Reports Nearly $39B in Revenues, Net Income Rises $600M

As has been the case for most of 2019, Cigna cited its megamerger with Express Scripts Holding Co. as a major contributing factor to the company's strong financials, specifically in the medical and pharmacy cost performance during Q3. 

C-SUITE PERSPECTIVE:

"Cigna's strong results and continued momentum reflect the differentiated value we create for our customers and clients," David Cordani, CEO of Cigna, said in a statement. "Our combination with Express Scripts enables us to leverage industry leading capabilities and more rapidly innovate to enhance clinical and cost outcomes for those we serve."

Cigna's total medical customer base inched up more than 200,000 members, totaling a little over remained 17 million at the end of the quarter. 

Customer relationships showed significant year-over-year growth again, nearly finishing at 170 million. 

Cigna made headlines frequently during Q3, announcing plans to expand individual coverage to 19 ACA markets across 10 states in 2020, while also exploring the sale of its group benefits insurance business. This move is valued at $6 billion, according to reports.

Related: Cigna, Too, Will Expand ACA Coverage to More States in 2020

Related: Cigna Seeks Sale of Group Benefits Insurance Business

Additionally, CEO David Cordani made comments shortly after its Q2 earnings call that 'Medicare for All' plans proposed by Democratic presidential candidates and congressional leaders is a non-starter.

"We do not believe a one-size fits all offering works for the United States in any way, shape or form," Cordani told Yahoo! Finance in August.

Related: 'Medicare for All' Would Not Work in the US: Cigna CEO

Cigna boosted its year-end guidance slightly, projecting adjusted income from operations to rise by another $40 million and adjusted revenues by $1.5 billion, while medical customer growth is projected to remaind steady with an additional 200,000 more customers.

ADDITIONAL CIGNA Q3 EARNINGS REPORT HIGHLIGHTS:

• Cigna's SG&A expense ratio decreased from 23.8% in Q3 2018 to 9.2% in Q3 2018.
• The insurer's debt to capitalization ratio for Q1 was 46.4%, an improvement on its 50.9% in Q4 2018.
• Through the nine months of 2019, the insurer repurchased 10.8 million shares for $1.8 billion. 

For complete financial information, review Cigna's filing with the Securities and Exchange Commission.