Bloomfield, Conn.-based health insurer Cigna reported a major drop in first-quarter earnings compared with the first quarter of fiscal year 2012, sliding 84.6 percent to $57 million from $371 million due to a one-time charge to exit several of its businesses.
Total revenue grew 21.2 percent to reach $8.18 billion for first quarter 2013 ended March 31, up from $6.75 billion in the same period last year, and up a half-billion dollars from fourth quarter 2012.
The decline in total earnings, despite increased revenues, is related to Cigna's $781 million transaction with Berkshire Hathaway to exit its reinsurance business, which it had been running in run-off mode seeking no new business since 2000. The obligations will stay on its balance sheet but profits or losses from the industry will not appear on quarterly reports going forward.
Cigna increased its outlook for FY 2013, expecting profits to range between $1.74 billion and $1.87 billion.
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Total revenue grew 21.2 percent to reach $8.18 billion for first quarter 2013 ended March 31, up from $6.75 billion in the same period last year, and up a half-billion dollars from fourth quarter 2012.
The decline in total earnings, despite increased revenues, is related to Cigna's $781 million transaction with Berkshire Hathaway to exit its reinsurance business, which it had been running in run-off mode seeking no new business since 2000. The obligations will stay on its balance sheet but profits or losses from the industry will not appear on quarterly reports going forward.
Cigna increased its outlook for FY 2013, expecting profits to range between $1.74 billion and $1.87 billion.
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