Cigna, Like Express Scripts, Posts Strong Pre-Merger Earnings

Total revenues rose 10% and the adjusted income guidance was upgraded to 28% as the insurer eyes its $67 billion merger with Express Scripts.

Cigna Corp. generated $11.5 billion in Q2, a 10% increase year-over-year, while netting an adjusted income from operations of $955 million, according to its earnings report released Thursday morning.

The insurer's productive 2018 continued through Q2, where shareholders' net income reached $806 million, increasing the price per share $0.14 compared to Q1. Cigna's Q2 performance prompted a revision of the insurer's financial guidance, with adjusted income from operations slated to rise from 25% to 28%, an increase of $800 million.

"Cigna continues to deliver innovative solutions that expand choice, transparency and quality for our customers and clients," David Cordani, CEO of Cigna, said in a statement. "Our strong second quarter results once again reflect the consistent effective execution of our global strategy, which will be further enhanced through our pending combination with Express Scripts."

Cigna's earnings report comes one day after Express Scripts posted another solid quarter of revenue growth. The companies are expected to have a finalized framework for their merger by the end of the summer and close by the end of the year.

Below are highlights from Cigna's Q2 earnings report:

The insurer repurchased 1.3 million shares for $275 million over the past year, but does not expect to repurchase additional shares until after the merger with Express Scripts closes.
Cigna noted that the parent company currently held $1.2 billion in cash and marketable investments at the end of Q2.
Cigna now estimates its 2018 total revenue growth will be 8%.

Additional information is available in Cigna's filing with the Securities and Exchange Commission.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.