Cigna reports 4.4% increase in revenue boosted by commercial business

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Bloomfield, Conn.-based Cigna recorded a total revenue of $9.9 billion in the fourth quarter of fiscal year 2016, up 4.4 percent from $9.5 billion during the same period last year.

The payer said its full-year 2016 revenue was $39.7 billion, a 4.7 percent increase year-over-year from $37.9 billion in 2015. Cigna said the increase reflects continued growth in its commercial business. Premiums in Q4 increased 2.1 percent year-over-year to $7.6 billion. Revenue for its mail order pharmacy increased 10 percent year-over-year.

Cigna also reported an adjusted income from operations of $485 million in Q4 2016, or $1.87 per share, down from $486 million, or $1.87 per share, for Q4 2015. The insurer said the adjusted income from operations reflected strong results in its commercial healthcare and global supplemental benefits businesses. Global supplemental premiums also increased 10 percent from the same period last year.

Shareholders' full-year net income included charges of $252 million for costs partly related to Cigna's proposed merger with Indianapolis-based Anthem.

The insurer added nearly 200,000 customers during FY 2016, increasing its total membership to 15.2 million by the end of the year. The uptick in membership was primarily visible in its middle market, select and international customer segments. Additionally, Cigna projected its global medical membership will grow by roughly 300,000 to 500,000 customers in 2017.

Cigna' full-year 2017 outlook includes a consolidated adjusted income from operations of roughly $2.35 billion to $2.48 billion, or $9 per share to $9.50 per share.   

"We concluded 2016 with strong momentum that positions the company for attractive earnings and customer growth in 2017," said David Cordani, president and CEO of Cigna.  

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