Cigna's 3Q Earnings Balloon 154%

Fiscal year 2012 for Cigna (pdf) just got a major boost, as the health insurer reported net income of $466 million in the third quarter — a 154 percent boost from the $183 million reported last year.

The major swing in profit was due primarily to big gains in premiums and other revenue sources, such as its Medicare Part D business, coupled with lower medical expenses. Cigna's total revenue in the third quarter increased 31.2 percent year-over-year, from $5.61 billion last year to $7.36 billion this year.


For the first nine months of 2012, Cigna's profit was $1.22 billion, a 23 percent jump from the first nine months last year. Total revenue in the first nine months stood at $21.6 billion, an increase of 30.7 percent.

Despite the high profit total in the third quarter, Cigna announced it would cut the size of its global workforce by 4 percent, according to a Wall Street Journal/Dow Jones report. Roughly 1,300 employees will be affected through both layoffs and decreased hiring.

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