Cigna profit falls 16.4% on higher medical costs By Reuters

(Reuters) -Well being insurer Cigna Corp (NYSE:) reported a 16.4% fall in second-quarter revenue on Wednesday, harm by larger medical prices, and stated it expects a adverse earnings affect from COVID-19 of about $2.50 per share for 2021.

The corporate, which additionally has a pharmacy advantages administration enterprise, stated its medical prices within the reported quarter grew as demand for non-COVID healthcare companies normalized.

Well being insurers have largely benefited from a decline in affected person use of discretionary healthcare companies as a result of ongoing pandemic, however demand for these companies is recovering as extra People get vaccinated.

Cigna raised the full-year forecast for adverse earnings affect as a result of pandemic from its earlier outlook of about $1.25 per share, however caught to its annual adjusted earnings from operations goal of at the very least $20.20 per share.

The corporate’s medical care ratio, the quantity spent on medical claims versus the earnings from premiums, worsened to 85.4% within the second quarter, from 70.5% a 12 months earlier, in contrast with an estimate of 81.04%, in keeping with 5 analysts polled by Refinitiv.

Cigna stated it now expects its medical care ratio for the total 12 months to be between 83.0% and 84.0%, in contrast with its prior forecast of 81.0% to 82.0%.

Web earnings attributable to shareholders fell to $1.47 billion, or $4.25 per share, within the quarter ended June 30, from $1.75 billion, or $4.73 per share, a 12 months earlier.