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.
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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