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Cigna’s health services unit, rebranded to Evernorth last September, has been driving growth amid volatile medical costs at its health insurance business due to the COVID-19 pandemic.
Evernorth’s adjusted revenue for the quarter ended Sept. 30 rose 12.7% to $33.61 billion, from $29.83 billion a year earlier.
Excluding items, Cigna’s income from operations was $5.73 per share, above analysts’ estimate of $5.23 per share, according to Refinitiv IBES data.
Cigna moderately raised its outlook for 2021 adjusted profit from operations to at least $20.35 per share, from its prior estimate of a minimum of $20.20 per share.
Cigna’s medical care ratio (MCR), the amount spent on medical claims versus income from premiums, worsened to 84.4% in the third quarter, from 82.6% a year earlier, compared with an estimate of 83.93%, according to four analysts polled by Refinitiv.
The company now expects 2021 MCR to be between 84.0% and 84.5%, up from its prior forecast of 83.0% to 84.0%.
