The Cigna Group reported $1.4 billion in third quarter profits thanks to strong growth across its Evernorth health services business and Cigna’s health insurance plans.
Cigna Thursday said third quarter net income was $1.4 billion, or $4.74 per share, compared to $2.75 billion, or $8.97 per share in the third quarter of 2022 when the company’s bottom line got a big boost from the sale of its life, accident and supplemental benefits businesses to Chubb.
Third quarter revenues, meanwhile, increased by 8% to $49 billion in the quarter compared to $45.3 billion in the year-ago period on strong performance of Cigna’s health plans and Evernorth Health Services, which includes the company’s Express Scripts pharmacy benefit management company.
Cigna’s health insurance plans have continued to add members this year from a variety of health plan products. “Total medical customers at September 30, 2023 grew 9% from December 31, 2022 to 19.6 million, an increase of 1.6 million customers, primarily driven by growth in U.S. commercial fee-based customers as well as in individual and Medicare Advantage customers,” the company announced in its third quarter earnings report.
Meanwhile, Cigna grew its total pharmacy customer base by 5% “from December 31, 2022 to 98.3 million (as of the end of the third quarter) due to new sales and the continued expansion of relationships.”
Given the strength thus far of its businesses, Cigna boosted its financial outlook for the rest of the year. Cigna now expects adjusted income from operations to be at least $24.75 per share and adjusted revenue of at least $192 million.
“We continued to drive growth in the third quarter by harnessing our deep clinical expertise and service capabilities across our company, supporting high-quality care, improved affordability and better outcomes,” said Cigna chairman and chief executive David Cordani. “With disciplined execution and continued innovation across Evernorth Health Services and Cigna Healthcare, we’re meeting the evolving needs of those we serve.”