Insurance giant Cigna posted a strong third quarter ahead of its merger with Express Scripts, which is on track to close by the end of the year.
Cigna pulled in $11.5 billion in revenue during the third quarter, a 9% increase from the third quarter of 2017. Its income from operations is projected to grow more than 30%, nearing $3.5 billion by the end of the year, according to Thursday's financial filing (PDF).
The insurer pulled in $772 million in profits last quarter, up from $560 million the same quarter last year.
This success stems from Cigna’s dedication to its customers, clients and communities, as well as its recent growth through investments, said CEO David Cordani on a call Thursday.
Black Book ranked Cigna first in customer satisfaction in its survey of networks and providers, Cordani said, and it earned three of the top 10 spots in the latest J.D. Power customer satisfaction rankings.
Cigna’s HEDIS clinical quality and CAHPS customer satisfaction scores have improved as well. Its overall corporate stars rating reached 4.5 for 2020, he continued, adding that 76% of Cigna’s Medicare Advantage plan members will be in plans with ratings of four or more stars in 2020.
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Cigna’s acquisition of Express Scripts, which the Department of Justice approved in September, featured prominently on the call. The PBMs profits surpassed $1 billion last quarter.
Acquiring the pharmacy benefit management company will allow Cigna to improve affordability, choice and predictability for its members, Cordani said. The insurer expects to close the transaction by the end of this year.
Cigna is in the process of securing approvals for the deal at the state level. So far, it has received 23 and has six remaining.
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“Upon closing, our company will operate from a position of considerable strength,” Cordani said.
When asked when the company might consider making its next big move—either through a merger, acquisition, or sale—Cordani hinted it could be a while. However, he said, Cigna has a “clear track record of being quite disciplined” and making “on-strategy … financially attractive” decisions.
In the meantime, he said Cigna is "well-positioned for a very successful 2019.”