Fourth-quarter net income at health insurer Cigna fell 11 percent, from $406 million in 2012 to $361 million in 2013.
Cigna reported total revenue of approximately $8.15 billion in the fourth quarter, up nearly 7 percent from $7.62 billion the previous year. However, the health insurer experienced higher medical costs related to its Medicare Advantage plans. Its medical cost ratio for the quarter was 86.4 percent, up from 82.2 percent the previous year.
For the year ended Dec. 31, Cigna reported $1.48 billion in net income, a 9 percent drop from $1.62 billion in 2012. The company posted $32.38 billion in revenue for 2013, an 11 percent year-over-year increase. However, the insurer experienced a decline in profit due toits $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 insurer posted $488 million in losses in 2013 because of run-off reinsurance.
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