CIGNA (NYSE: CI) Earnings Q1 2011

 

 

 

View CIGNA's (NYSE: CI) Q1 Earnings Report


Highlights

  • Shareholders' net income totaled $429 million, or $1.57 per share, up nearly 52 percent, from $283 million ($1.02 per share), in 2010
  • Adjusted income from operations for Q1 2011 was $375 million, or $1.37 per share, increasing 36 percent per share compared with the first quarter of 2010.
  • First quarter consolidated revenues increased to $5.4 billion, up nearly 4 percent from the same period last year. Cigna expects overall 2011 revenue to be higher than in 2010.
  • The company's Q1 medical loss ratio fell to 77 percent, from nearly 83 percent
  • The operating expense ratio increased to 27 percent, up from 26.5 percent for the period ending March 31
  • Full-year 2011 earnings, on an adjusted income from operations basis, are expected range from $1.3 billion to $1.4 billion, or $4.65 to $5.00 per share.

Notable quote: "The higher operating expense ratio reflects strategic information technology investments...During the first quarter of 2011, the Company incurred total after-tax costs of approximately $6 million related to Health Care Reform comprised of $2 million of additional income tax related to the impact of the tax law changes...and $4 million of after-tax costs related to building the infrastructure necessary to comply with the provisions of Health Care Reform that became effective in 2011. These costs represent the estimated cost of internal staff redeployed to work on Health Care Reform initiatives. The Company expects to spend an additional $16 million after-tax for the remainder of 2011 related to Health Care Reform initiatives."

For more information:
- Read the company's 10-Q report filed with the SEC
- Read this company press release
- Check out CIGNA's current earnings estimates from CNN Money
- See how CI is performing right now
- CIGNA's website: www.cigna.com

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