The Express Scripts merger continues to boost Cigna's financial performance.
During Q2, Cigna Corp. built on its strong start to 2019, notching nearly $39 billion in total revenues and shareholders' net income of $1.4 billion, an increase of $600 million year-over-year.
The Bloomingfield, Connecticut-based insurer produced adjusted revenues of $34.4 billion, adjusted income from operations of $1.64 billion, and saw its net income per share rise from $3.29 to $3.70.
In its earnings report, Cigna attributed significant growth in its health services segment, particularly among adjusted revenues and adjusted income from operations, to the insurer's megamerger with Express Scripts Holding Co. late last year.
"As Cigna accelerates our focus on whole person health, our strong second quarter results reflect the value we deliver to customers and clients, and our consistent execution in a dynamic environment," CEO David Cordani said in a statement. "We continue to invest in innovative, customer-centric solutions to improve affordability and personalization for those we serve."
Despite strong growth numbers across the board, the insurer's total medical customer base remained flat at 17 million, rising only 36,000 year-over-year.
Once again, customer relationships increased considerably for Cigna, as it finished with nearly 169 million in Q2, up from 97 million Q2 2018.
The company also reportedly flexed its muscle to prevent its home state from enacting legislation that would have created government-subsidized healthcare through a public option.
In May, the Hartford Courant reported that Cordani threatened to pull Cigna out of Connecticut if the state legislature passed the so-called "Connecticut Option Legislation." Cigna denied the newspaper's report but did confirm that it lobbied hard against the bill.
Cigna also updated its year-end guidance, projecting adjusted income from operations to rise between $60 million to $100 million, adjusted revenues to rise $2.5 billion to $3.5 billion, and add 200,000 more medical customers.
ADDITIONAL CIGNA Q2 EARNINGS REPORT HIGHLIGHTS:
- Cigna's SG&A expense ratio decreased from 23.5% in Q2 2018 to 9% in Q2 2018.
- The insurer's debt to capitalization ratio for Q1 was 47.9%, an improvement on its 50.9% in Q4 2018.
- Through the first half of 2019, the insurer repurchased 6.2 million shares for $1.1 billion.
For complete financial information, review Cigna's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: Photo credit: KONSKIE, POLAND - AUGUST 11, 2018: Cigna logo displayed on a modern smartphone - Image / Editorial credit: Piotr Swat / Shutterstock.com