Summary Box: Cigna’s 2nd-quarter profit falls 32 percent on impact from discontinued business
By APThursday, August 5, 2010
Summary Box: Cigna 2Q earnings drop, outlook rises
THE RESULTS: Managed care company Cigna Corp. saw its net income fall 32 percent to $294 million, or $1.06 per share, in the second quarter. Revenue rose 19 percent to $5.35 billion.
THE REASONS: Cigna took a loss of 37 cents per share in the quarter from its guaranteed minimum income benefits business, which the insurer discontinued in 2000. Meanwhile, adjusted income for its biggest segment, health care, soared 40 percent to $247 million.
THE NEW FORECAST: The insurer raised its 2010 adjusted earnings guidance to between $4.10 and $4.40 per share. Analysts expect $4.10 per share.
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