CIGNA Posts Significant Drop in First-Quarter Profits
Philadelphia-based health carrier Cigna Corp. posted an 80 percent drop in first-quarter profits due to softness in its core health care unit and hefty charges in its annuities business.
The company earned $58 million, or 21 cents per share, in the quarter, compared with $289 million, or 98 cents, in the quarter a year earlier.
Profits include $195 million, or 69 cents per share, of charges from Cigna's guaranteed minimum income benefits business mainly related to accounting and litigation matters.
Revenue rose 4.4 percent to $4.6 billion.
Excluding one-time items, Cigna reported adjusted earnings from operations of $265 million, or 94 cents per share, compared with $279 million, also 94 cents due to fewer shares outstanding.
Analysts surveyed by Thomson Financial expected a slightly higher profit — 95 cents per share — but lower revenue, $4.55 billion.
Published on May 1, 2008
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