Cigna posts 3rd-quarter profit rise on stronger premiums and fees

PHILADELPHIA -- Health insurer Cigna Corp. said Friday its third-quarter earnings rose 23 percent on increased premiums and fees to top Wall Street expectations, and raised its outlook for the full year.

Cigna, which also sells disability and life insurance, said net income climbed to $365 million, or $1.28 per share, from $298 million, or 92 cents per share, a year ago.

Adjusted income from operations totaled $323 million, or $1.14 per share, compared with $268 million, or 83 cents per share, in the prior-year period. Adjusted income from operations totals income from continuing operations excluding realized investment results and special items.

Total revenue rose to $4.41 billion from $4.14 billion in the 2006 quarter.

Analysts surveyed by Thomson Financial expected profit of 94 cents per share on revenue of $4.41 billion.

Enrollment in Cigna's health care plans increased 5.1 percent through the first nine months of the year, excluding 357,000 members related to the Aug. 1 acquisition of Sagamore Health Networks.

Looking ahead, the company now estimates 2007 adjusted earnings per share of $1.10 billion to $1.16 billion, or $3.80 to $4 per share. Fiscal 2007 medical membership is expected to grow by 5 percent to 5.5 percent, excluding Sagamore members.

Wall Street had forecast profit of $3.75 per share. In August, Cigna had predicted full-year adjusted profit of $3.55 to $3.75 per share.